Mumbai: Shares of Sun Pharma plunged 15 percent Tuesday, wiping out Rs 34,055.55 crore from its market valuation, after the drug major said it expects to take a hit on profit for the fiscal due to charges related to the ongoing integration with Ranbaxy Laboratories.
The stock tumbled 14.95 percent -- its biggest single-day fall -- to settle at Rs 805.30 on the BSE. In intra-day trade, shares of Sun Pharma plunged 15.6 percent to Rs 799.05.
At the NSE, shares of the company plummeted 15 percent to Rs 805.25 at close.
The extreme weakness in the stock pulled down the company's market valuation by Rs 34,055.55 crore to Rs 1,93,784.45 crore.
The stock was the biggest loser on both Sensex and Nifty.
"After the FY16 sales and profit guidance, we expect the company's financials to be impacted," said Sarabjit Kour Nangra, VP Research - Pharma, Angel Broking.
As a part of the integration process with Ranbaxy, the company expects to incur certain integration charges in order to generate long-term synergies from this merger, Sun Pharma said in a statement yesterday.
Also as part of the integration processes, the company may decide to discontinue certain non-strategic businesses, it said.
As per the company's estimates, the consolidated revenues would remain flat or show a decline over FY15. Also the consolidated profits "may also be adversely impacted due to certain expenses/charges arising out of integration as well as remedial actions."
The company completed the USD 4 billion merger deal with Ranbaxy Laboratories in March this year.
Meanwhile, in the broader market the BSE Sensex ended at 28,182.14, down 237.98 points.
