Categories: Joint Venture

Sun Pharma’s Valia bets on Ranbaxy, picks 1.4%


New Delhi January 10,2014: At a time when many are closely watching the 
Laboratories scrip, , a limited liability partnership firm with Sun Pharmaceuticals’  as one of the partners, has picked up a 1.41 per cent stake in the Indian generic arm of Japanese drug maker .

The holding is viewed as minimal but the move created a buzz on the Street because of its valuation and anticipation thatthe Ranbaxy stock could  bring fortunes for many going forward, if the company secures pending approvals in the US.

According to market analysts, Silverstreet Developers has acquired the stake in Ranbaxy over the past two or three months. Based on Ranbaxy’s closing price of Rs 474.10 on Thursday and the current market cap of Rs 20,089 crore, the stake acquired by Silverstreet is estimated to be valued at Rs 280-300 crore.

Although it would not allow the investment firm any prominent visibility in Ranbaxy, it is being observed because of Valia’s interest.

“Ranbaxy is currently a lottery stock. The firm has a few product approvals pending in the US. If it manages those, the stock will bounce back giving its investors huge profits. On the other hand, if the company falters further, it will be a major loss. Given this situation, an interest from an investor such as Valia may a indicate better future for Ranbaxy,” said an industry source.

Ranbaxy has been awaiting the US drug regulator’s final nod for its generic versions of Novartis AG’s hypertension drug Diovan. Recent enforcements by the US Food and Drug Administration on Ranbaxy’s Mohali facility have also raised fears of a possible delay in the launch of other new products including a generic version of Roche’s anti-viral Valcyte and AstraZeneca Plc’s blockbuster heartburn and ulcer pill Nexium in the US, analysts said.

Valia, who is also the brother-in-law of Dilip S Shanghvi, managing director of , had acquired a 26 per cent stake in a joint venture with Norwegian telecom giant Telenor through his firm,  Lakshdeep Investments & Finance in 2012. Valia has been an independent investor in many mid-sized Indian companies.-Business Standard

The Pharma Times News Bureau

Recent Posts

DKMS-BMST – Bridging the Care Gap in Blood Cancer Treatment on National Cancer Awareness Day

New Delhi, November 07, 2024: National Cancer Awareness Day serves as a poignant reminder of…

12 hours ago

The Arya Vaidya Pharmacy (Coimbatore) Ltd. Strengthens Legacy with New Initiatives and Expanded Product Portfolio

Coimbatore, November 07, 2024: The Arya Vaidya Pharmacy (Coimbatore) Ltd. (AVP), a pioneer in Ayurvedic…

12 hours ago

New medical nutrition ingredient combines high-protein with “best taste yet”

New Delhi, November 06, 2024: Arla Foods Ingredients has launched a new whey protein hydrolysate…

1 day ago

6 Early Signs of Ovarian Cancer

By Dr. C N Patil, HOD and Lead Consultant - Medical Oncology & Haemato-Oncology, Aster…

1 day ago

Bayer Introduces Bepanthen in India as New Survey Reveals Dry Skin Affects 1 in 2 Indians

·        World's no.1 skincare brand Bepanthen* launches in India, as a solution to tackle India's widespread dry skin…

2 days ago

Lung Cancer in India: Understanding Risk Factors and the Importance of Early Detection

By Dr. Pavan Yadav, Lead Consultant - Interventional Pulmonology & Lung Transplantation, Aster RV Hospital.…

3 days ago