Sun Pharma and Wockhardt not safe bets: Ashish Maheshwari

Ashish Maheshwari, Director, Globe Capital Market Ltd., speaks to ET Now about the outlook of Sun Pharma and Wockhardt.

What would you do with Sun Pharma and Wockhardt?

If we talk about Sun Pharma, they said they are holding 20% of their FCCBs particularly and in my view, they might have bought these FCCBs at a distressed amount because once upon a time, these Wockhardt FCCBs were available at 70% discount from the issue price. So for $20 million worth of FCCBs if Sun is holding, I do not think the acquisition cause will be more than $10 million. So in this investment, it will be largely financial nature and I agree to this idea that they are not looking for acquiring Wockhardt per se because in $10 million, you cannot really buy the company. So it is neutral for Sun Pharma per se. For Wockhardt, they are in final stages of resetting this FCCB price. So it is slight jolt for them that if Sun Pharma is going to object on the price settlement, then whatever the efforts are being done by Sun Pharma in last one quarter may go haywire. So really some worries out there for Wockhardt and this stock has really performed very good in last one month because market was expecting that the settlement will happen soon. So there will be a slight blow for Wockhardt stock price and I again see this may come down to 200-215 levels.