Sun Pharma is likely to be in the thick of action this week as the company called off its proposal to buy out Taro. Sun Pharma currently owns 66 per cent stake in the Israeli firm. The company recently increased the offer price to $39.5 a share to acquire the balance 34 per cent stake in Taro, which is quoting around $50. Taro shareholders may not be willing to approve the merger unless the offer price is increased substantially. With cash in excess of Rs 6,500 crore, Sun is exploring inorganic growth opportunities in the US and other emerging markets. Some analysts view the termination of the deal as positive for Sun Pharma, as the company would otherwise have to spend a huge additional sum, making it an expensive buyout.
Financial Tech, MCX to take
cue from trading in MCX-SX
The stocks of Financial Technologies and MCX will continue to see higher activity this week, as MCX-SX – the third exchange -- will commence live trading in the equity market's cash and futures & options segments from Monday. Financial Technologies and MCX are the promoters of MCX Stock Exchange. According to MCX-SX, 1,116 securities will be available for trading in the capital market segment initially. As the launch of MCX-SX created a huge hype, its success, particularly in terms of liquidity, would be keenly watched. If trading activity fails to meet market expectations, the stocks of the two promoters may come under pressure.
Promoter's dilution and Elantas Beck
The stock of Elantas Beck India will remain in focus following the promoters' plans to dilute 13.55 per cent (or 10.74 lakh shares) through the offer-for-sale route on Monday. Elantas GmbH, its German promoter, which currently holds 88.55 per cent stake in the company, wants to dilute its stake to meet the minimum public shareholding criteria of 25 per cent. The sale will take place on the separate window of the BSE between 9.15 a.m. and 3.30 p.m. Following the announcement, the stock crashed 20 per cent on Friday to Rs 829.25, which is its 52-week-low, as a section of market participants were expecting a delisting proposal from the promoter. The stock's 52-week high is Rs 2,599.95.