Sun Pharmaceutical Industries Ltd. signage is displayed outside the company’s corporate office in the Andheri suburb of Mumbai, India (Photographer: Amit Madheshiya/Bloomberg)

Sun Pharma Shares Fall The Most In Nearly 22 Years, Recover Partly

Shares of Sun Pharmaceutical Industries Ltd. fell to their lowest since November 2012.

The stock tumbled as much as 21.3 percent on Monday, its biggest drop since July 1997, before closing around 9.10 percent lower at Rs 398 on the BSE. However, what led to the plunge isn’t known yet.

The drugmaker’s volumes were 5.8 times its 30-day average at the time of closing. Its Relative Strength Index stood at 21, indicating that the stock may be oversold. Sun Pharma’s stock has dropped 8 percent so far this year compared with a 2.6 percent rise in the Nifty 50. The company has faced governance concerns over loans to a third party and the delayed disclosure of the promoter’s link to a distributor for the drugmaker.

Pledged Shares Revoked

As per an exchange filing by the company today, Raksha Valia, wife of Sudhir Valia, Sun Pharma’s executive director and brother-in-law of founder Dilip Shanghvi, revoked or released pledged shares.

Nearly 19.3 lakh shares held by Valia and pledged with Kotak Mahindra Mutual Fund were released, according to the filing. She held 1.41 percent in the drugmaker as of March. Her pledged holding fell from 99.87 percent as of March to 94 percent after revoking the shares today.

Also read: Seven Indian Drugmakers Named In U.S. Lawsuit For Inflating Prices Of Generics