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Updated: 06/01/2009 | 12:00 AM IST
Sun Pharmaceuticals almost unchanged on Taro bid revision
Capital Market
Tuesday, January 06, 2009 (New Delhi)
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The company made the announcement during trading hours yesterday, 5 January 2009, when the stock ended 0.42% down at Rs 1043.85 on BSE.

Meanwhile, the BSE Sensex was up 29.03 points, or 0.29%, to 10305.78.

On BSE, 6,274 shares were traded in the counter. The scrip had an average daily volume of 58,101 shares in the past one quarter.

The stock hit a high of Rs 1048.65 and a low of Rs 1032 so far during the day. The stock had a 52-week high of Rs 1557.80 on 10 September 2008 and a 52-week low of Rs 890 on 24 January 2008.

The stock had underperformed the market over the past one month till 5 January 2009, rising 3.44% as compared to the Sensex's 14.62% rise. It had also underperformed the market in the past one quarter, falling 29.69% as compared to the Sensex's fall of 17.97%.

India's largest drug maker by market capitalisation has an equity capital of Rs 103.56 crore. Face value per share is Rs 5.

The current price of Rs 1041 discounts its Q2 September 2008 annualised EPS of Rs 58.54, by a PE multiple of 17.74.

Sun Pharmaceuticals, which owns 36% of Taro, on Monday (5 January 2009) disclosed two options to buy the remaining stake in the New York Stock Exchange listed drug maker. The revised offers come after the Israeli Supreme Court, on 8 December 2008, directed the companies to explore an out-of-court settlement within 30 days.

For the first option, Sun offered to buy shares at $9.5 each instead of the earlier $7.75 per share. Sun Pharma will have to pay $14 million more than its earlier proposal on this basis.

For the second option, Sun offered $9 per ordinary share for all shareholders other than Taro Chairman Barrie Levitt and $8.5 per ordinary share for the five million-odd shares held by the promoter group. If this is accepted, Sun's payout will be slightly lower than the first option. Taro, however, is yet to respond to the revised offer.

Sun Pharma company spokesperson was quoted by media as saying that Sun's proposal given to Taro has been designed keeping in mind primarily the interests of minority shareholders. Taro is yet to formally respond to Sun's proposals and neither has it made another alternative proposals.

Sun Pharmaceuticals Industries net profit rose 55.6% to Rs 303.14 crore on a 24.6% rise in sales to Rs 929.37 crore in Q2 September 2008 over Q2 September 2007.

Sun Pharma is an international, integrated, speciality pharmaceutical company. It manufactures and markets a large basket of pharmaceutical formulations as branded generics as well as generics in India, US and several markets across the world.

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