New Delhi: The shares of Sun Pharma fell by nearly 11 per cent on Monday following media reports that the Securities and Exchange Board of India (SEBI) is likely to reopen to reopen an insider trading case against Sun Pharmaceutical as well as probe alleged lapses by some of its promoters and other entities in raising funds overseas.
The share price of Sun Pharma fell sharply to Rs 441.95. Notably, this is Sun Pharma’s biggest daily loss since May 2017. The stock hit an over six-month low and is the top decliner on NSE.
The development comes after a whistleblower reportedly approached Sebi with a document alleging various irregularities by the company, its promoter Dilip Shanghvi, and others.
In August 2017, Sun Pharmaceutical, its managing director Dilip Shanghvi and nine other entities settled an insider trading probe on payment of Rs 18 lakh towards settlement charges.
According to the sources, alleged irregularities by the company’s promoters and others in raising funds through Foreign Currency Convertible Bonds (FCCBs) are also likely to be investigated by the watchdog.
On Thursday, stock exchanges had sought clarification from Sun Pharma following a brokerage report that allegedly raised concerns about certain practices at the company. In reply, the company had said the points raised pertain to historic events, some of which are dated as far back as 10-15 years.
(With PTI inputs)