NEW DELHI: Shares of Sun Pharma crashed by falling over 12 per cent on Friday, taking their 2-day fall to 17 per cent.
While there wasn't any fresh update by drug maker on stock exchanges websites, reports suggest a whistleblower has filed a second complaint against it.
This, according to report, was same whistleblower who had complained to Sebi in Ranbaxy insider trading case."When market is trading at high multiples, there is no room for error, especially on corporate governance side.
Whether it is a small cap or a large cap, it does not matter.
And we have seen a few such instances over last three four months where there have been a few large cap names which have got severely impacted.
That is clearly something that one needs to be worried about," Mahesh Nandurkar, India Strategist at CLSA told ET Now.The stock fell 12.11 per cent to hit a low of Rs 375.40.
Overall, scrip has fallen 17.19 per cent over Wednesday's closing price of Rs 453.35.Sun Pharma has been facing issues on corporate governance for past few months.
There has been a new whistleblower complaint filed with Sebi.
The company had met FIIs in December to explain its stand, said Sameer Kalra, Equity Research Analyst and Founder, Target Investing.On early Friday, there were signs that certain FIIs are liquidating their positions.
"We have a buy rating, but with a low weightage in portfolio till issue is resolved," Kalra said.Sebi last month confirmed reports that it had received a whistleblower complaint against Sun Pharma, Indias largest drug maker.
Sun Pharma MD Dilip Shanghvi in an hour-long chat with investors had maintained that company follows highest standards of corporate governance.
Ravi Dharamshi, CIO, ValueQuest, said corporate governance issues were not completely unknown to market.It is only that they are out in public domain and they probably did not matter when you were a small company.
But today, when you are in trillions of rupees of market cap, they matter a lot more because all global FIIs have taken an exposure to your stock, analyst told ETNow on Thursday.