INSUBCONTINENT EXCLUSIVE:
Brokerage houses that had raised issues over corporate governance at Sun Pharmaceutical Industries are singing a different tune now, as a
meeting of Sun Pharma's top leadership team with large foreign institutional investors and high-net-worth individuals, assuring them about
The management had met FIIs like Goldman Sachs and Temasek post an investor call in December to give clarifications on several issues that
had been raised by large investors over corporate governance issues, said people familiar with development.
On Wednesday, brokerage firm
Jefferies wrote in its research note.
The brokerage put a target price of Rs 535 on Sun Pharma
The target is Rs 370 for a worst-case-scenario, which it said now looked limited
On Wednesday, stock closed 0.3 per cent higher at Rs 453.35 on BSE.
The stock has corrected over 10 per cent in two months on concerns
around whistle-blower allegations and potential investigations
On corporate governance side, Jefferies wrote that although most of issues appeared dated, it might remain an overhang for now until clarity
It gave fair value at Rs 475.
Market regulator Securities and Exchange Board of India in late 2017 opened an investigation against company
over an anonymous whistle-blower complaint
by promoter family, among several other issues
Sun Pharma had denied all allegations and said company maintained highest standard of corporate governance.
