AstraZeneca Pharma surges another 12% on delisting move

Foreign promoter, who currently holds 75% in firm, must buy at least 15% from public shareholders for successful delisting

The voluntary delisting proposal of Swedish drug maker AstraZeneca Pharmaceuticals has sent the shares of its Indian arm soaring; the stock gained 34 per cent in two days. Extending Monday’s 20 per cent surge, shares of AstraZeneca Pharma India on Tuesday gained another 11.5 per cent at Rs 1,238.85.

On Wednesday, the Indian company’s board will meet to discuss the proposal. To ensure successful delisting, AstraZeneca’s foreign promoter, which holds 75 per cent stake, will have to acquire at least 15 per cent from public shareholders.

A sharp run-up in the stocks of delisting-bound multinational companies is a common practice in Indian markets, in which delisting norms are skewed in favour of public shareholders.

Analysts say further gains in the AstraZeneca stock will depend on the floor price announced by the company. In the past, AstraZeneca had tried to delist twice, but without any success.