Sun Pharma moves SC against stay on Ranbaxy merger

Sun Pharmaceutical Industries said on Wednesday it had moved the Supreme Court on Tuesday against a stay on its merger with Ranbaxy Laboratories by the Andhra Pradesh high court.

In a statement to the BSE exchange, Sun Pharma said, “We further state that there is no material impact of the matter on the process of the merger of Ranbaxy with our company.”

Last month, the high court had ordered an interim status quo on the $4-billion deal, after a suit from some individual investors alleged insider trading in Ranbaxy’s shares by Silverstreet Developers, Sun’s wholly owned arm, before the deal was announced on April 6.

In their suit, Tammali Shiva Kumar and Undi Venkatasubbajaru, investors in the two drug makers, requested the court to direct the Securities and Exchange Board of India not to approve in principle the merger.

They also sought a probe by Sebi, BSE and the National Stock Exchange in the alleged stock trading.

Sun Pharma has denied the charge and said the arm’s share purchase was being annulled.