Shares of Dai-ichi Kakaria saw a sudden spurt in share price, after the Delhi High Court verdict in a Daiichi-Singh brothers’ dispute.
The Delhi High Court has allowed the Japanese firm Daiichi to collect ₹3,500 crore from former Ranbaxy promoters Malvinder and Shivinder Singh as part of an international arbitration award.
The Delhi High Court ruled that the ₹3,500-crore arbitration award that Daiichi Sankyo won against billionaire Singh brothers for concealing information about erstwhile Ranbaxy Laboratories is enforceable in India.
Daiichi Sankyo had moved the Delhi High Court to enforce the arbitral award it had won in 2016 in the Singapore tribunal.
According to the Japanese drugmaker, the Singh brothers had concealed important information while selling Ranbaxy in 2008. The generic company in 2013 pleaded guilty in the US to charges of distributing adulterated medicines and falsifying data. It had to pay $500 million. Sun Pharmaceutical later acquired the company from Daiichi.
Partly namesake firm
As usual, some operators misread the judgment and jacked up the price of Dai-ichi Kakaria, which has no relation to the company.
Dai-ichi Karkaria, one of the specialty chemical companies, had commenced production in 1963, in technical collaboration with Dai-ichi Kogyo Seiyaku Co Ltd, Japan. Promoters — Roshan Hoshi Gazdar, Shireen Hoshi Gazdar, Sharenaz Vakil and others — hold 63.74 per cent stake in the company. The stock was hovering around ₹407 on the BSE around 2.20 pm, and as soon as news of the verdict broke, it jumped almost 11 per cent to a high of ₹451. The BSE-listed stock closed at ₹428.35 up 3 per cent, over the previous day’s close of ₹429.
For FY2017, the company had reported a profit of ₹17.84 crore on revenues of ₹125.97 crore. While the company will declare its third quarter results for the current fiscal on February 5, for the first two quarters it had reported PAT of ₹2.05 crore and ₹3.11 crore, respectively, on revenues of ₹31.85 crore and ₹31.67 crore.