Just about a year since the Rs 10,000 crore deal whereby Ranbaxy was taken over by Japan's Daiichi-Sankyo, there has been a top leadership change effected by the board of the Indian company, with Chairman and CEO, Malvinder Mohan Singh resigning on Sunday.
Daiichi took over Ranbaxy through a transfer of the entire 35% Singh family stake in the company for Rs 10,000 crore last year and thereafter hiked its stake to 64 per cent with another investment of Rs 10,000 crore.
Malvinder had a five year tenure that he was supposed to stay in the lead at Ranbaxy, but the tenure was cut short when he quit. No reason was assigned for his departure.
While that happened yesterday, the markets gave a resounding positive acknowledgement of the move by closing the day up by 20 per cent on the Bombay Stock Exchange -- earlier in the day it had risen to as high as 24 per cent.
The gain in investors wealth was to the tune of Rs 1,900 crore -- in one day!
This move comes in the wake of the troubled company announcing a slew of negative news over the last few months including a forex losses of Rs 800 crore and reported losses stretching over three consecutive quarters. It had posted a Rs 761 crore profit in 2007.
Stock Report Ranbaxy Labratories