Novartis down as delisting denied

Novartis India has plunged down into the red today. The stock had breached the breached upper circuit at Rs.869.60 yesterday. But today it has fallen down some 13% at Rs.730, its current new intra day low.

The stock was up yesterday after unconfirmed reports started coming in that the company is considering delisting from the Indian bourses. The Swiss parent owns 75% stake. And then after market hours yesterday, the company issued a clarification stating that it is not aware of the source of this news. It further stated that Board of the Company has not received any notice from the promoters of the Company, Novartis AG on its intention to delist the equity shares of the Company from the bourses.

The market is very disappointed that there would be no delisting now and thus the slump today.