Mumbai: Shares of AstraZeneca Pharma India continued the rally on Wednesday rising by their daily maximum upper limit of 20% to an 52-week-high after its Swiss parent decided to delist the company.
Shares of AstraZeneca opened up 18.34% on Wednesday against Tuesday’s close of Rs1,207.05 and hit a high of Rs1,448.45 when the BSE 30-share index Sensex opened down 0.72% on weak global cues.
The shares had jumped 20% on Tuesday as well and hit Rs1,207.05 on the announcement.
AstraZeneca Pharma AB, the parent company, holds 89.99% in AstraZeneca Pharma India and the latter’s board approved a proposal to delist its shares from stock exchanges.
“Since the public shareholding is just about 10%, shareholders believe the company would offer a good exit price,” said Siddhant Khandekar, analyst with Sunidhi Securities & Finance.
Latest regulatory rules mandate a minimum 25% public shareholding, forcing companies with small public holdings to choose to delist instead of diluting their equity.
“The actual delisting might happen anytime. Hence, shareholders are trying to make the most of it,” another analyst from a Mumbai-based brokerage.
At 12:00 noon, shares eased to Rs1,324.05, still up 9.69% in a firm Mumbai market that rebounded from early losses.