6. Inorganic growth leading to real growth: Story of Sun pharma growing inorganic way – Dr Shuchi Gautam
It’s good to make your passion as work and luckily by grace of god I was blessed It’s almost a two decades working in the area financial consulting. Just reached my office and was going through the latest headline .Working in last 10 decades as a M&A analyst have witnessed more than 100 merger and acquisitions.
Sun Pharmaceutical & Ranbaxy Laboratories today announced that they have entered into definitive agreements pursuant to which Sun Pharma will acquire 100% of Ranbaxy in an all-stock transaction. In one stroke Sun Pharmaceuticals has doubled its size in a cashless transaction by acquiring one of India’s largest pharmaceutical company – Ranbaxy.
Having a consolidated turnover of Rs 11,326.32 crore (March ending 2013), Sun Pharma acquired a larger company Ranbaxy with a turnover of Rs 12,410.43 crore (March ending 2013).
Sun Pharma took more than 30 years to achieve (inception in 1983) its present turnover and a single day to achieve the same turnover through this acquisition. I observed the beauty of the transaction which lies in the fact that a bigger sized company has been acquired without paying anything for it (in absolute rupee terms). The deal is a cashless share swap one where Ranbaxy shareholders get 80 shares of Sun Pharma for every 100 shares they own.
I was going through this, suddenly my phone started ringing. It was Raman my college friend. He has invited me for the dinner this Sunday. He was working was working with Ranbaxy for last 10 years.
More Details: Thakur Institute of Management Studies & Research More Details: Thakur Institute of Management Studies & Research