The News International Team
12:20pm Daiichi Sankyo on Sun-Ranbaxy merger: Through this merger completion, Ranbaxy will be delisted from the Indian stock exchanges, with Ranbaxy shareholders receiving 0.8 shares of Sun Pharma for each share of Ranbaxy.
Daiichi Sankyo currently holds about 63.4 percent of Ranbaxy shares, which at the current rate equates to an estimated profit around 340 billion yen. This profit margin is due to be included as profit/loss related to discontinued operation in the consolidated results of Daiichi Sankyo for March 2015.
The full earnings for this fiscal year are only forecasts for the Daiichi Sankyo Group, so this profit margin will not be included in the profits of consolidated result forecasts for March 2015.
Through the merger, Sun Pharma becomes the fifth-largest specialty generics company in the world and the largest pharmaceutical company in India.
12:00pm Market Check
The market continued to consolidate in noon trade with the Nifty hovering around the 8,550 mark supported by pharma and banking stocks. The broader markets were in-line with the frontliners.
Tata Motors rose over a percent as the board today is expected to consider detailed terms of proposed rights issue of upto 7500 crore and will also mull buy-back of secured non-convertible debentures with face value of Rs 1,250 crore.
Shares of ICICI Bank, HDFC and Mahindra & Mahindra gained more than 1 percent while L&T, ONGC, NTPC, GAIL, Coal India and BHEL declined 1-2.5 percent.
Sun Pharma rallied 2 percent ahead of a press meet today. Most likely the company may highlight the regulatory nods for merger with Ranbaxy. The stock has been active since CCI gave its nod for the Sun-Ranbaxy merger.
Ipca Labs tumbled 13 percent on import alert for its Pithampur and Silvassa units, which is in addition to import alert imposed on Ratlam facility in January.
Globally, Asian markets fell on the back of an uninspiring lead from Wall Street. Shanghai took a breather, down 1 percent after a 10-day winning streak.