Sun Pharma’s stocks surge after merger with Taro

Sun Pharma’s stock hit a new high of Rs 932 on Monday on strong performance of Taro, the Israeli company it acquired in 2010. This also pushed its latest buyout Ranbaxy Labs to a record high of Rs 697.50.

Sun Pharma stock got listed in 1994, an issue that was oversubscribed 55 times. Acquiring strategic assets has been in the company’s DNA – with the first acquisition made in 1996 and 18 altogether till now. Since the beginning of 2013, Sun Pharma stock has doubled from below Rs 400 to a level closer to the Rs 1,000 mark – making Dilip Shanghvi, the richest billionaire globally in the healthcare business. The promoter group today owns 63.65% of the company – fairly unchanged since 2008. The recent rally has been steeper, considering that it took more than three years for the stock to double from below Rs 200 (in 2010) to Rs 400 (in 2013).

In the past one year, while the Sensex has risen 36%, Sun pharma stock has sprung 52%.