Sun Pharmaceutical gained 2 per cent after Friday's over 12 per cent intra-day fall as the management of the company wrote to market regulator Securities and Exchange Board of India to examine the alleged second whistleblower complaint filed against the company in its entirety.
Sun Pharma closed with gains of 1.94 per cent at Rs 398.35 on the BSE and at Rs 398.55 on the NSE. Earlier the stock hit a high of Rs 406.55 on the NSE in the intra-day trading.
Sun Pharma’s research & development arm Sun Pharma Advanced Research Company (Sparc) also gained 17.15 per cent on the BSE, closing at Rs 173.85.
Reports also said that Sun Pharma management plans to restructure its distribution arm and 100 per cent subsidiary Aditya Medisales and may transfer distributor business to itself.
The alleged 172-page whistle blower complaint talks of huge amount of money provided as loans and advances provided by Aditya Medisales to companies promoted Sun Pharma promoters, including Surakasha Realty. The whistleblower document was made available to select investors.
Sun Pharma’s letter written to Sebi on last Friday after the stock fell sharply to touch a new low of Rs 375.40 said , “There is a great asymmetry in the information circulating between analysts, investors and media leading to intense speculation. The availability of information contained in the whistleblower documents to a set of selective investors does put other investors including retail investors in a disadvantageous position.”
“We are concerned that certain entities/individuals are adopting unfair trade practices prejudicial to the interest of shareholders and other stakeholders. It is evident from the fact that shareholders value has been drastically eroded within a short span of time due to unsubstantiated complaint/allegation against the company and mala fide campaign launched by certain media houses,” Sun Pharma’s letter to Sebi said.