Sun Pharma surges on reports Shanghvi likely to buy partial stake of Daiichi in company; ends day flat

MUMBAI: India's richest businessman Dilip Shanghvi plans to increase his stake in Sun Pharma. Sources close to the development indicate that Shanghvi may buy a partial stake (up to 5%) from Daiichi Sankyo, which holds 8.93 per cent share in the merged entity following acquisition of Ranbaxy Laboratories by Sun Pharma.

Reacting to the news, Sun Pharma rose as much as 2.8 per cent to hit its intraday high of Rs 1066.40 on the BSE, after ET NOW reported the story. The stock ended flat, up 0.66 per cent or Rs 6.80 at Rs 1044.1.

Daiichi Sankyo is currently classified under the non-promoter category in the merged entity.

Dilip Shanghvi & Family hold nearly 54 per cent stake in India's largest pharma company. Commenting on the story - Hardik Shah, Research Analyst at Prosperofinvest said: "It makes sense for Daiichi to divest stake to promoters as it will be able to raise funds for their growth plans."

"On the other hand, Dilip Shanghvi may like to hike stake to keep promoter holding at desirable levels to balance future fund raising or M&A-led dilutions," he adds.