Sun Pharmaceutical Industries share price touched a 52-week high of Rs 654.40 in the early trade but was still trading a percent lower after the Securities and Exchange Board of India (SEBI) issued an order for settling charges made by a whistleblower.
SEBI on February 11 directed Sun Pharmaceutical Laboratories Ltd (SPIL) founder and Managing Director Dilip Shanghvi to pay Rs 62.35 lakh towards settling the charges by a whistleblower that the drug manufacturer had diverted funds through related-party transactions.
The settlement order came after the market regulator on May 19, 2020 issued show-cause notices to the company, whole-time directors and some officers for alleged violations of certain provisions of SEBI following an investigation of two whistle-blower complaints.
The aforementioned proceedings have been settled and disposed as per the settlement terms set out in the order, without admitting or denying the findings of fact and conclusions of law in accordance with the terms of SEBI (Settlement of Administrative and Civil Proceedings) Regulations 2018, in order to expeditiously close the matter.
The aggregate settlement charges were Rs 2,92,10,250.
Also Read: Aditya Medisales case | Sun Pharma founder Dilip Shanghvi ordered to pay Rs 62.35 lakh for settling whistle-blower charges
JPMorgan | Rating: Overweight | Target: Rs 675
The regulatory overhang abating with DoJ & SEBI settlements. The stock re-rated in the last three months with specialty momentum being crucial. The upside risk to the US revenue assumption of $400 million for Ilumya & Cequa in FY23, CNBC-TV18 reported the brokerage as saying.
Macquarie | Rating: Outperform | Target: Rs 700
The settlement is likely to remove the risk of any incremental overhang. However, continued traction in ex-US sales and rising specialty sales was keeping them upbeat, CNBC-TV18 reported the brokerage as saying.
Morgan Stanley | Rating: Overweight | Target: Rs 705
The whistle-blower case pertaining to AML nondisclosure & fund diversion is closed. The settlement amount of Rs 2.92 crore has been remitted by Sun and seven senior executives, reported CNBC-TV18.
At 0944 hours, Sun Pharmaceutical Industries was quoting at Rs 637.80, down Rs 5.85, or 0.91 percent on the BSE.