Ranbaxy soars 7 pc on BSE in early trade

Ranbaxy Laboratories on Monday surged nearly seven per cent on the Bombay Stock Exchange, a day after Malvinder Mohan Singh stepped down as its Chairman and Managing Director.

Ranbaxy Laboratories on Monday surged nearly seven per cent on the Bombay Stock Exchange, a day after Malvinder Mohan Singh stepped down as its Chairman and Managing Director.

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Shares of Ranbaxy opened firm and surged to touch a high of Rs 235, up 6.65 per cent over previous close on the BSE.

Singh announced his resignation on Sunday, paving way for the appointment of Atul Sobti as the new Chief Executive Officer and Managing Director for three years. Also Tsutomu Une, non-executive director, has been elected as chairman of the board of Ranbaxy.

The Gurgaon-based drug firm had forecast a loss of about Rs 800 crore for the current financial year ending on December 31, 2009. The drug firm had posted a loss of Rs 761 crore in the first quarter of FY'09.

The board of Ranbaxy has approved the decision to effect change in the management team. The change of guard comes nearly a year after Ranbaxy was acquired by Japanese drug major Daiichi-Sankyo. Daiichi had acquired a majority stake in Ranbaxy for about Rs 22,000 crore.

Similar movement was witnessed on the National Stock Exchange where the scrip surged nearly nine per cent to a high of Rs 240. Over 19.64 lakh shares changed hands on the bourses.