Strides Arcolab shares gain 9% on merger with Shasun Pharma

Shares of Strides Arcolab gained over 9 per cent today after the company and Shasun Pharmaceuticals announced their merger that will create an entity among the top 15 listed domestic drug makers with a turnover of over Rs 2,500 crore.
Strides' stock jumped 9.20 per cent to settle at Rs 701.95 on the BSE. During the day, it surged 12.7 per cent to Rs 724.45.
At the NSE, it rose by 8.93 per cent to end the day at Rs 699.
Shasun Pharmaceuticals ended flat down 0.38 per cent at Rs 195.75 on the BSE.
In another instance of consolidation in Indian pharma sector, Strides Arcolab and Chennai-based Shasun Pharmaceuticals today announced their merger that will create an entity among the top 15 listed domestic drug makers with a turnover of over Rs 2,500 crore.

"The Board of Directors of both the companies have approved a scheme of amalgamation between the two companies," Strides Arcolab and Shasun Pharmaceuticals said in a joint statement.
Shasun will amalgamate with Strides in an all-stock transaction. Shashun shareholders will receive 5 equity shares of Strides for every 16 shares held by them in Shasun, the statement added.
Based on the exchange ratio, Shasun shareholders will own 26 per cent of the combined entity. The current promoters of Shasun will, post the approval of the merger, be categorised as promoters of the combined entity, along with the existing promoters of Strides.