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Rambaxy's Price Rise Smells Fishy

Regulator snoops as Ranbaxy's traded volumes and stock prices shoot up prior to its acquisition by Sun Pharma

Even before Sun Pharma announced its acquisition of Ranbaxy Labs for $3.2 billion, the Ranbaxy counter witnessed heavy trading, pushing up the stock price from ₹370 on April 1 to ₹462 on April 4 when the deal was announced. This was way close the ₹457 a piece agreed settlement price for each Ranbaxy share. Suspicion rings as the average combined NSE and BSE volume of the Ranbaxy stock three days prior to the deal touched 1.25 crore or four times higher than the six months average traded volume of 35 lakh.