Sun Pharma shares up 3.16 per cent

Shares of Sun Pharmaceuticals were trading higher after the company said over the weekend it has launched an offer to buy outstanding shares in its unit,Caraco Pharmaceutical Labs for 4.75 per share,two dealers said. 8220;Sun Pharma management likely sees this as a good opportunity to buy out the residual shares as they are weighed down by US FDA issues at Caraco8217;s manufacturing site,8221; said CLSA in a note on Monday,which has an 8220;outperform8221; rating on the stock with a target price of 474 rupees. According to CLSA,company will spend around 45.8 million for buying the outstanding shares,which will have a minor impact on the earnings per share as company is cash rich.

At 12.36 p.m.,shares of the company were up 3.16 per cent at Rs 458.80.