Ranbaxy tastes bitter
Ranbaxy is currently the top loser on the BSE, down 2.5% at Rs.472. the stock opened weaker and then went on to an intra day low at Rs.466. Though it has recouped, the counter remains largely bearish.
The stock is in the red following the uncertainty caused by the ‘status-quo’ order issued by Andhra Pradesh High Court on the Sun deal. The HC has directed exchanges to not give any clearances to this deal yet as it is beginning investigation into accusation of insider trading. This order from the HC comes on the back of individual investors filing a writ petition, alleging insider trading, stating that the counter of Ranbaxy saw heavy trading just before the deal was announced and those involved, they made a hefty profit of around Rs.285 crore.
Six days before the deal was announced on 6th April, the stock price of Ranbaxy rose 34% and on 4th April itself, the stock rose almost 9%. Volumes during these six days were also very heavy, despite there being no valid reason for the same.