Sun Pharma shares tank 12% on fresh whistleblower complaint; Dilip Shanghvi's wealth to shrink

Earlier in December as well, shares of the company had plummeted after a note allegedly circulated by brokerage firm Macquarie brought to light various corporate misgovernance issues at the country's leading drug company.

The sharp plunge in Sun Pharma shares will further erase the net worth of its founder and managing director Dilip Shanghvi, currently ranked 6^th in the list of richest Indians and 173^rd in the Bloomberg Billionaire Index.

According to the index, Shanghvi has so far lost $490 million, with more than $300 million in the first half of this month (data as on Thursday). The index is a daily ranking of the world's richest people and the numbers are updated at the close of every trading day in New York.

Responding on negative cues for the stock, Nimish Mehta, founder and director of Research Delta Advisor, said, “A lot of it would be related to what the information is lying in the whistleblower’s complaint and given that it is not open to everybody, it is difficult to understand. However, we need to look at what are the legal charges because there might be transactions, but legally what is right and what is wrong is going to be the pre-decisive factor. Clearly, sentiments are negative for the stock. I think the legal point of view is going to be the most important here. We would want to wait out for any legal course of action rather than these kinds of sentimental driven information. It is not fair to react to some news. It is a legal case and we need to hear what Securities and Exchange Board of India (SEBI) is going to do with this information.”

Shares traded at Rs 382.95 at 10.38 am on the NSE likely on value buying, after opening at Rs 424.05. The stock was the top drag on Nifty Pharma, which plunged 2.83 percent, leading sectoral losers. Sun Pharma’s one-year return is negative with share value correcting by 33.5 percent.

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