Markets

AstraZeneca shares lose ground on SEBI probe

PTI Mumbai | Updated on March 13, 2018 Published on June 25, 2014

Shares of >AstraZeneca Pharma India today lost ground after the capital market regulator SEBI had last night ordered close monitoring of the proposed delisting of the company on suspicion that the promoters may have violated norms in concert with foreign fund house Elliott Group.

The stock fell more than two per cent to Rs 1,127 in early morning trade on the BSE.

In an order passed late last night, SEBI had said that it suspects a coordinated and concerted attempt by the promoters of AstraZeneca Pharma India and the Hong Kong-based Elliott Group during a previous Offer for Sale of the company’s shares in violation of norms.

While SEBI is still continuing its probe into the matter, it has asked BSE and NSE to “closely monitor the entire delisting process of AstraZeneca Pharma India Ltd and allow the final delisting of its shares only after satisfying themselves that the process has been fair and transparent’’.

Last week, the company had informed that the shareholders have given their go-ahead through postal ballot to a delisting proposal. Pursuant to that, the shares have been rising.

The two stock exchanges have also been asked to promptly report any aberrations noticed in the delisting process, while the promoters of the company would be able to finally purchase the shares from public shareholders only after seeking approval from both the BSE and NSE.

SEBI said its preliminary probe raises “suspicion that Elliott Group might be working in collaboration/concert with the promoters of AstraZeneca Pharmaceuticals Sweden to facilitate the delisting of AstraZeneca Pharma India Ltd’’.

During an Offer for Sale undertaken by the Indian company’s promoters in 2003, SEBI said that the seller broker (ICICI Securities) had conducted more than 60 roadshows prior to the OFS and the OFS floor price was at a significant discount to the prevailing market price.

“Still only Elliott Group was allocated 94.02 per cent of shares offered through OFS and the floor price was kept at Rs 490 against the previous day’s closing price of Rs 805.3 which made the bids (2.84 times over-subscription) in the OFS hover around this price only.

“This facilitated the Elliott Group to mop-up almost all the shares (that is 94.02 per cent) offered in OFS at an average price of Rs 625.35, which is lower than the previous day’s closing price by Rs 179.95,” it said.

The capital market regulator said: “if suspected concerted/coordinated action of AstraZeneca Pharma Sweden and Elliott Group is found true, then their act/conduct may amount to contravention of SEBI (Prohibition of Fraudulent and Unfair Practice Relating to Securities Market) Regulations, 2003.

“The matter requires further examination in this regard,” the regulator added.

Published on June 25, 2014

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Sincerely,

Support Quality Journalism
null
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.