Wockhardt tumbles 5 pc on BSE
Drug maker Wockhardt today plunged nearly 5 per cent on the BSE amid media reports that rival Sun Pharmaceutical has opposed the settlement between Wockhardt and some of its creditors.business Updated: Aug 26, 2010 19:15 IST
Drug maker Wockhardt on Thursday plunged nearly 5 per cent on the BSE amid media reports that rival Sun Pharmaceutical has opposed the settlement between Wockhardt and some of its creditors.
Reacting to the news, the shares of the pharma major tanked 4.67 per cent to settle at Rs 226.65 on the Bombay Stock Exchange.
In a similar manner, the scrip lost 5.61 per cent to close at Rs 224.70 on the National Stock Exchange. About 18 lakh shares changed hands on both the bourses.
"The stock had already seen a huge run up, so there was profit booking in the counter and besides the stock came under pressure due to the negative news," Geojit BNP Paribas Financial Services Assistant Vice-President Gaurang Shah said.
Meanwhile, the broader gauge Sensex ended the day in green at 18,226.35, up 0.26 per cent, from previous close.
According to media reports, Wockhardt is about to enter a deal with various offshore creditors, while Sun Pharma has stepped in opposing the settlement and claimed that it holds about 20 per cent of the foreign currency convertible bonds (FCCBs) that Wockhardt had issued to raise $ 110 million.
The opposition by Sun Pharma may delay the new agreement that Wockhardt is planning to enter with FCCBs investors.
Meanwhile, shares of Sun Pharma finished the day at Rs 1,776.40, down 0.36 per cent on the BSE.