Sun Pharma back in reckoning

Sun Pharma has gone up back into the green today. The stock rose over 5.5% to Rs.421.50 and remains the top gainer on the BSE since morning.

The stock has heaved a sigh of relief as the company is actually putting an end to the corporate governance issue of Aditya Medisales Ltd (AML).

The company issued a clarification today morning stating that the domestic formulations distribution is to be transitioned from AML to a wholly owned subsidiary of Sun Pharma. This change will be made effective by Q1FY20, post receipt of all requisite regulatory approvals.

Also regarding loan guarantees, the company confirmed affirmatively that neither any loans nor guarantees have been given to Suraksha Realty. It said, “Sun Pharma would like to dispel all falsehoods being spread about its financial dealings with Suraksha Realty. The company states unequivocally that it does not have any financial transactions with Suraksha Realty.”