Sun Pharma gains after CCI approves merger between Sun Pharma and Ranbaxy

Sun Pharmaceutical Industries rose 1.83% to Rs 843.95 at9:30 IST on BSE after the Competition Commission of India in its meeting held on 5 December 2014, approved the proposed merger between Sun Pharmaceutical Industries and Ranbaxy Laboratories.

The announcement was made by both the companies after trading hours on Monday, 8 December 2014. Shares of Ranbaxy Laboratories gained 3.51%.

Meanwhile, the BSE Sensex was down 52.73 points, or 0.19%, to 28,066.67.

On BSE, so far 38,038 shares were traded in the counter, compared with an average volume of 2.32 lakh shares in the past one quarter.

The stock hit a high of Rs 854 and a low of Rs 842.60 so far during the day. The stock hit a record high of Rs 932 on 10 November 2014. The stock hit a 52-week low of Rs 552.50 on 14 March 2014.

The stock had underperformed the market over the past one month till 8 December 2014, falling 7.05% compared with 0.9% rise in the Sensex. The scrip had also underperformed the market in past one quarter, declining 4.3% as against Sensex's 2.93% rise.

The large-cap pharma firm has an equity capital of Rs 207.12 crore. Face value per share is Re 1.

The merger between Sun Pharma and Ranbaxy was approved by the Competition Commission of India subject to the parties inter alia carrying out the divestiture of their products relating to seven relevant markets for formulations. Further, the Commission also directed that the proposed merger shall not take effect before the parties have carried-out the divestiture of the products so specified as per the order of the Commission.

In April 2014, Sun Pharma acquired Ranbaxy in $ 4 billion landmark transaction.

Sun Pharma's consolidated net profit rose 15.4% to Rs 1572.46 crore 11.8% rise in total income to Rs 4822.15 crore in Q2 Septemeber 2014 over Q2 September 2013.

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