Shares of Sun Pharmaceutical Industries Ltd dropped as much as 3 per cent to Rs 442 on the BSE. The stock touched a high of Rs 464.70 and a low of Rs 442 against the previous close of Rs 455.30. The shares sank over 10 per cent on Monday after a report of a regulatory probe against the company.
According to a media report, the Securities and Exchange Board of India (SEBI) is likely to reopen an insider trading case against Sun Pharma. The company had said late on Monday it had not been informed of reopening of any old insider trading case. It added that its tax rate is now in mid-teens.
Various brokerage and media reports have in recent weeks raised questions about the company's governance lapses and a probe by the capital markets regulator, sending its shares lower.
The company's statement on Monday “may leave the markets with mixed feelings,” Jefferies analysts write, with a price target of Rs 535 and rating “hold”.
IIFL Institutional Equities says “based on investor feedback, management may look at rewinding/reorganising some transactions that the company believes will not have any material impact on its operations”.
More than 9.3 million shares traded as of 0443 GMT, 1.1 times their 30-day moving average of 8.8 million shares. Of 37 brokerages covering the stock, 13 rate it “buy” or higher, 13 “hold” and 11 “sell” or lower; their median price target is Rs 577.50.