Scripscan:Astrazeneca Pharma India Ltd
cmp:2070
Code:506820
BL Story:While most pharma companies have had a decent run in the stock markets last year, the stock of AstraZeneca Pharma India got an additional boost, driven by talks of a possible delisting offer. According to the shareholding norm stipulated in 2010, Indian regulations require minimum public shareholding for listed companies to be 75 per cent.Companies that currently do not enjoy the stipulated shareholding pattern have time till June 2013 to comply with the regulations. AstraZeneca India, with its promoter holding (AstraZeneca Pharmaceuticals AB Sweden) pegged at about 90 per cent, is a possible delisting candidate. With rumours and speculation about delisting price abounding the markets, the stock has seen a sharp run up in price.The promoter, however, also has the option of bringing down their holding to the mandated 75 per cent level. But with $2.8 billion net cash with AstraZeneca Pharmaceuticals, the market is betting that the parent would prefer to buyout the remaining shareholders in its Indian subsidiary. It merits a note here that the parent has set a target of $4.5 billion for share repurchases (globally) this year.Ensuring a full buyout, however, would be challenging. AstraZeneca had in 2010 also tried to delist the Indian business. But the shareholders failed to approve the move in a postal ballot.
Friday, March 30, 2012
Important Disclaimer&Privacy policy
This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: arunsharemarket@gmail.com
Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
