December 4, 2018 / 4:59 AM / 4 months ago

BUZZ-India's Sun Pharma edges higher; issues clarification over report of regulatory probe

** Shares of drugmaker Sun Pharmaceutical Industries Ltd recoup some of previous session’s losses; rise as much as 2 pct

** Stock sank more than 10 pct on Monday after a report of a regulatory probe against the company

** Markets regulator Securities and Exchange Board of India (SEBI) is likely to reopen an insider trading case against Sun, a report by the PTI carried in Indian daily Economic Times said

** Company said late on Monday it had not been informed of reopening of any old insider trading case; adds its tax rate is now in mid-teens

** Various brokerage and media reports have in recent weeks raised questions about the company’s governance lapses and a probe by the capital markets regulator, sending its shares lower

** Company’s statement on Monday “may leave the markets with mixed feelings,” Jefferies analysts write, with PT 535 rupees and rating “hold”

** IIFL Institutional Equities says “based on investor feedback, management may look at rewinding/reorganising some transactions that the company believes will not have any material impact on its operations”

** More than 9.3 mln shares trade as of 0443 GMT, 1.1 times their 30-day moving avg of 8.8 mln shares

** Of 37 brokerages covering the stock, 13 rate it “buy” or higher, 13 “hold” and 11 “sell” or lower; their median PT is 577.50 rupees ($1 = 70.3850 Indian rupees)

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