Foreign investors lap up stake sold by Daiichi in Sun Pharmahttps://indianexpress.com/article/business/business-others/foreign-investors-lap-up-stake-sold-by-daiichi-in-sun-pharma/

Foreign investors lap up stake sold by Daiichi in Sun Pharma

The Japanese firm sold its entire 8.9 per cent stake in Sun Pharma for an estimated Rs 20,420 crore.

Foreign institutional investors (FIIs) on Tuesday lapped up the 8.9 per cent stake in Sun Pharmaceutical Industries that was sold by Japan’s Daiichi Sankyo, investment bankers said.

Data released by the Bombay Stock Exchange shows that FIIs pumped in a record net inflow of Rs 17,488 crore into the Indian markets on Tuesday. While details of the buyers have not been disclosed yet, two investment bankers told The Indian Express that the stakes were bought by at least three players including — Goldman Sachs (Singapore) Pte, Government of Singapore and Aranda Investments Mauritius.

While Daiichi Sankyo held 21.49 crore shares, sources said that Goldman Sachs (Singapore) Pte bought 5.12 crore shares accounting for 2.1 per cent stake in the company; Government of Singapore picked up 1.26 crore shares and Aranda Investments picked up 2.01 crore shares in Sun Pharma.

It is also learnt that Bank of Nova Scotia and a Canadian Pension Fund also picked up stakes in the company sold by Daiichi. The Japanese firm sold its entire 8.9 per cent stake in Sun Pharma for an estimated Rs 20,420 crore.  Following the news of Daiichi Sankyo ending seven years of its troubled existence in the country, Sun Pharma stocks opened on a volatile note.

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After witnessing a sharp dip of 10.63 per cent to Rs 933.10 on the BSE in intra-day trade on Tuesday, shares of Sun Pharma finally ended at Rs 951.60, down 8.86 per cent. The company’s market valuation dipped by Rs 22,262.25 crore to Rs 2,28,960.75 crore. Daiichi had received this stake after merger of Ranbaxy with Sun Pharma.

The company forayed into the growing Indian pharmaceutical market by buying a majority stake in Ranbaxy Laboratories in 2008 for Rs 22,000 crore.