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Market Update

India Movers: Sun Pharma Agrees to Buy Ranbaxy for $3.2 Billion

Author: Mukesh Buch
Last Update: 9:37 AM ET April 07 2014

6:00 PM Mumbai BHEL annual profit declined 51% and revenue dropped 20%. GMR won airport development contract from Philippines. IL&FS emerged as the lowest bidder for road contracts worth Rs 290 crore. Sun Pharma agreed to buy Ranbaxy for about $3.2 billion.

The Sensex Index slipped 16.05 to close at 22,343.45. The CNX Nifty rose 0.70 to close at 6,695.05.

Gainers & Losers

Bharat Heavy Electricals Limited declined 3.3% to Rs 177.85 after net profit in the year plunged 51.2% to Rs 3,228 crore and revenue tumbled 19.5% to Rs 40,366 crore.

GMR Infrastructure Ltd soared 5.4% to Rs 24.50 after the consortium partner Megawide Construction Corp won a 25-year contract to develop Mactan-Cebu International Airport of Philippines with total project cost of $700 million.

IL&FS Transportation Networks Ltd climbed 3.9% to Rs 131 after the company emerged as the lowest bidder for road contracts worth Rs 289.60 crore in South Kerala.

Kilburn Engineering Ltd jumped 3.8% to Rs 22 after the company won five separate orders worth more than Rs 90 crore.

Sun Pharmaceutical Industries Limited gained 2.7% to Rs 587.25 after the company agreed to buy generic drugmaker Ranbaxy Laboratories Ltd for about $3.2 billion.

Under the terms, shareholders of Ranbaxy will get 0.8 shares of Sun Pharma. The deal is expected to close by end of this year. The deal is the sixth large purchase by Sun in as many years.

Japan based Daiichi Sankyo Co agreed to give up its stake in Ranbaxy and will control 9% stake in the merged Sun Pharma.

Daiichi paid 61% more for Ranbaxy and the India based generic drugs maker faced production problems and U.S. regulatory inquiries that has hurt profitability of the company.

Ranbaxy employs 14,600 people in eight countries and operates 21 manufacturing plants making drugs for urological disease, gastrointestinal and cardiovascular disease. Sun has a product portfolio of psychiatric treatment.

Seamec Ltd surged 12.1% to Rs 112.60 after the company said that Vessel SEAMEC PRINCESS will complete her Charter with Kreuz Subsea Pte in South East Asia before April 15.

Tata Steel Limited increased 1% to Rs 405.95 after the company said its saleable steel production climbed 12.7% to 8.95 million tons per year in the year ending in March.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc