Stocks

Stocks to Watch: US court ruling to impact Lupin

K.S. Badri Narayanan Chennai | Updated on March 03, 2013

The stock of Lupin is likely to come under pressure as the company failed to get a verdict in its favour in the US court to prevent Mylan Inc from selling a generic version of the drug Antara, used to treat high cholesterol levels. According to a Bloomberg report, the US Court of Appeals for the Federal Circuit in Washington upheld a lower court ruling that Mylan didn't infringe two patents to the medicine, known by its active ingredient fenofibrate. The court, which did not issue a formal opinion, heard arguments on February 22 and posted notice of its decision on its Web site.

Divestment to keep focus on RCF

The stock of Rashtriya Chemicals and Fertilizers will be in focus, as the Government is planning to dilute 9.33 per cent stake in the company. According to media reports, the disinvestment is likely to happen on March 8. It will be interesting to know what would be the floor price, given the sudden change of sentiment in the market. At current market price, disinvestment could fetch about Rs 3,800 crore for the Government. This will also set the trend for the other disinvestment candidates such as MMTC, SAIL and Nalco. The Government so far raised about Rs 22,000 crore through divestment this fiscal.

Promoter dilution in Adani Enterprises

Adani Enterprises will remain in focus on Monday at the bourses, as one of its promoter plans to dilute the stake in the company through the exchanges' auction route. The company fixed the floor price at Rs 220, in premium to the Friday's closing price of Rs 211. Adani Agro, part of promoter group, will sell 85 lakh shares in the auction to meet SEBI's minimum public shareholding norm. In a similar exercise last month, Adani Agro sold 70 lakh shares of Adani Enterprises that brought down its stake in the company to 8.33 per cent from from 8.96 per cent. Promoters of Adani Enterprises held a 77.87 per cent stake in the company at the end of December 31, 2012.

Published on March 03, 2013

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