Sun Pharmaceutical seeks shareholder nod for RPTs worth $1 billion

Sun Pharmaceutical Industries on Thursday said it has sought shareholders' approval for related-party transactions (RPTs) worth approximately $1 billion for FY26.

 

The transactions involve Sun Pharma’s subsidiaries, including Taro Pharmaceuticals (Canada), Taro Pharmaceutical Industries (Israel), and Taro Pharmaceuticals U.S.A., among others. The RPTs cover funding through loans, guarantees, and securities, as well as revenue from the sale of pharmaceutical products, reimbursements, and business transfers.

 

A key component of the transactions includes a $650 million funding arrangement for its U.S. subsidiary, Sun Pharmaceutical Industries Inc. (SPI Inc.), to support business expansion.

 

Sun Pharma stated that these transactions are on an arm’s length basis and align with applicable local laws. Shareholders can cast their votes electronically from February 24 to March 25, 2025.

 

Last November, the Ministry of Corporate Affairs levied penalties on certain past and present directors and officials, including CMD Dilip Shanghvi, for non-disclosure and failing to obtain board and shareholder approval for certain related-party transactions.

 

"A total combined compounding fee has been levied on certain past and present directors/officers of the company—Dilip Shanghvi (Rs 9.5 lakh), Sudhir Valia (Rs 9 lakh), Sailesh Desai (Rs 9 lakh), K Subramanian (Rs 1.5 lakh), Uday Baldota (Rs 6 lakh), and C Muralidharan (Rs 1.5 lakh),” the company said in a regulatory filing.