Sun Pharma extends decline for 2nd day, stock drops nearly 3%

Shares of Sun Pharmaceutical dropped further by around 3 per cent Tuesday amid reports of Sebi reopening an insider trading case against the firm and probing alleged lapses by some of its promoters.

However, the company said it has not received any communication from the market regulator with respect to reopening of insider trading issue.

The stock fell 2.75 per cent to end at Rs 442.8 on the BSE. Intra-day, the shares declined 2.98 per cent to Rs 441.7.

On the NSE, the scrip fell 2.72 per cent to close at Rs 443.

Sun Pharma had slumped 7.5 per cent on the bourses Monday.

Sebi is likely to reopen an insider trading case against Sun Pharmaceutical Industries as well as probe alleged lapses by some of its promoters and other entities in raising funds overseas, PTI reported on Friday citing sources.

The development comes after a whistle-blower reportedly approached Sebi with a document alleging various irregularities by the company, its promoter Dilip Shanghvi and others, they added.

In an investors call on Monday, Shanghvi, Sun Pharma founder and MD, said that as of now the company has not received any query from Sebi with regard to whistle-blower complaint and not received any information from Sebi with respect to reopening insider trading issue.

"We are following the highest levels of corporate governance at Sun Pharma," Shanghvi had said.

In August 2017, Sun Pharmaceutical, its managing director Shanghvi and nine other entities settled an insider trading probe on payment of Rs 18 lakh towards settlement charges.