Strides Arcolab, Shasun Pharma hit record high ahead of amalgamation

Shasun shareholders would receive 5 equity shares of Strides for every 16 shares held by them in Shasun.

Shares of Shasun Pharmaceuticals and Strides Arcolab have touched their respective record highs, up 6% each on the National Stock Exchange (NSE), ahead of scheme of amalgamation of Shasun Pharmaceuticals with Strides Arcolab.

Among the individual stocks, Strides Arcolab has surged 6% to Rs 1,398, while Shasun Pharmaceuticals too up 6% at Rs 433 on the NSE.

Strides Arcolab has fixed November 19, 2015 as the record date for the purpose of determining the names of the shareholders of Shasun Pharmaceuticals who shall be entitled to shares in Strides Arcolab.

Shasun Pharmaceuticals shareholders would receive 5 equity shares of Rs 10 each of Strides Arcolab for every 16 equity shares of Rs 2 each held in Shasun Pharmaceuticals.

Combined entity to be amongst the top 15 listed Indian pharmaceutical companies by revenue with increased scale and visibility to drive future growth, Strides Arcolab said in a statement.

Praful Bohra and Aarti Rao analysts at Religare Institutional Research expect Shasun’s merger to fill in key portfolio gaps while Arrow’s acquired portfolio provides a sustainable cash-flow stream.

We remain positive on the stock and restate BUY with a Sep’16 target price of Rs 1,570, analysts said in a report dated October 28, 2015.

At 02:51 PM, Strides Arcolab and Shasun Pharmaceuticals were up 5% each at Rs 1,374 and Rs 427 respectively.