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Our Bureau

Mumbai, Oct. 16 Ranbaxy Laboratories’ promoters have been directed by the stock market regulator not to offload their stake to Japanese drug-maker Daiichi Sankyo through a block deal on the stock exchanges.

A letter to this effect has been sent to Ranbaxy’s promoters by SEBI, on Thursday, a merchant banking source told Business Line. The development came, after the stock exchanges sought the market regulator’s nod for such a deal.

The shares of Ranbaxy have fallen sharply since its promoters announced that their entire stake would be sold to Daiichi in $ 4.6-billion deal in June, at Rs 737 a share. On Thursday, the shares closed at Rs 266 on the BSE. .

Ranbaxy would be keen on going in for a block deal on the exchanges to avoid capital gains tax that it will have to pay if the share transfer is consummated outside the stock market, a market analyst said. .

A block deal on the stock market though would only mean paying Securities Transaction Tax and Minimum Alternative Tax.

The 20 per cent capital gains on Ranbaxy promoters stake sale of 34.81 per cent comprising approximately 13 crore shares translates to around Rs 1,900 crore for an estimated deal value of Rs 9,576 crore at a price of Rs 737 a share.

The deal with Daiichi does not get affected, but the ball is now in the Ranbaxy promoters’ court on whether to appeal to the Cabinet Committee on Economic Affairs or to do a off market transaction, said merchant banking sources handling the deal for Daiichi.

The company, however, said it had not heard from SEBI. A spokesperson said “the deal is on track and will be completed as per schedule.”

More Stories on : Stocks | Mergers & Acquisitions | Pharmaceuticals | Regulatory Bodies & Rulings | Ranbaxy Laboratories Ltd

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