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Who Bought Those SunPharma Shares?

[fusion_text] After that insane 20,000 cr. volume in Sun Pharma yesterday as Daiichi sold a whopping Rs. 20,000 cr.  worth shares, who really bought them?

Turns out the buyers weren’t named Dilip Shanghvi (the promoter of Sun Pharma). While we don’t know the identity of all other buyers, we do know from NSE’s Bulk Deals reporting that three big investors bought into Daiichi’s selling. Here they are: [/fusion_text][one_third last=”no” spacing=”yes” background_color=”” background_image=”” background_repeat=”no-repeat” background_position=”left top” border_size=”0px” border_color=”” border_style=”” padding=”” class=”” id=””][title size=”2″ content_align=”left” style_type=”single” sep_color=”” class=”” id=””]Temasek[/title][fusion_text]

Aranda Investments, Mauritius is a subsidiary of Temasek, a Government of Singapore investment arm.

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2.02 cr. shares

Rs. 1,915 cr.

[/fusion_text][/one_third][one_third last=”no” spacing=”yes” background_color=”” background_image=”” background_repeat=”no-repeat” background_position=”left top” border_size=”0px” border_color=”” border_style=”” padding=”” class=”” id=””][title size=”2″ content_align=”left” style_type=”single” sep_color=”” class=”” id=””]Singapore Govt.[/title][fusion_text]

The Goverment of Singapore also invested directly in the issue, and brought in over Rs. 1,000 cr. 

 

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1.26 cr. shares

Rs. 1,197 cr.

[/fusion_text][/one_third][one_third last=”yes” spacing=”yes” background_color=”” background_image=”” background_repeat=”no-repeat” background_position=”left top” border_size=”0px” border_color=”” border_style=”” padding=”” class=”” id=””][title size=”2″ content_align=”left” style_type=”single” sep_color=”” class=”” id=””]Goldman Sachs[/title][fusion_text]

Goldman Sachs, Singapore also bought Daiichi’s holdings, with nearly 5,000 cr. invested in the issue.

 

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5.12 cr. shares

Rs. 4,864 cr.

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Note: We assume investments were made at Rs. 950.

We will probably know of the others only if they bought more than 1% of the company or if they report these purchases elsewhere. All the trades were executed on the NSE, it seems. 

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  • esotericBlue says:

    i feel Daiichi’s pain. 20% loss is painful, not even considering sizable amount they put in years back. GoI’s T bills could have given them a yield of ~ 7% a year, even after considering taxes

  • chirag says:

    Was Daiichi thinking let me get out because they are clueless … or were they thinking sun pharma is no different than ranbaxy

  • Rajat Gupta says:

    Daiichi knows that Sun will also be getting a US FDA red flag soon!! Also, biz community back in Japan is miffed with Daiichi post the Ranbaxy US FDA fiasco. They don’t want to be part of the same scenario again.

    • chirag says:

      Just wondering then, why Daiichi bought Ranbaxy in 2008? Because the US FDA troubles and investigations had very much started by then.
      Is this a way for Big Pharma to stem a generic threat … buyout a generic maker, weaken their process and get them banned ???

  • kumar says:

    perhaps there is another angle, albeit a long and convoluted one, to this trade.
    you might have heard of TPP, the deal that has been in the backrooms of the countries for the past few years. it is being pushed by america and few other countries, and the internet has a lot of information on this deal, with very few official sources. mostly leaked documents, but they do point to a trend in the way things are going.
    generics are going to take a hit if and when this deal comes into play, and it might be come into play sooner than expected.
    perhaps this was advance preparation by daiichi, since some countries are aware of the direction of negotiations.
    pure speculation on my part.

  • Raman says:

    I got intrigued by Kumar’s reply about TPP and tried to gather some info. Seems its true. And Japan is included in the list of countries (not China). If interested, read about it at:
    http://www.newsweek.com/trans-pacific-partnership-trade-united-states-china-nafta-324630?piano_d=1
    http://en.wikipedia.org/wiki/Trans-Pacific_Partnership

  • Naresh Nayak says:

    Ha! It makes sense for Daiichi to sell at a 20% loss. Daiichi Sankyo is a Japanese company with its base currency in JPY. Remember the JPY crashed from 80 to 120 to the greenback which is a 50% haircut. When you exit at a 20% dollar loss you still net 30 % gains in JPY which is good for a JPY denominated balance sheet and those tiny, disciplined Japanese shareholders who will bow to the Daiichi CEO as a mark of respect when he carts off a special dividend to them.