Shares of Aurobindo Pharma Ltd surged nearly 5% in early trade on Wednesday, hitting ₹1,089.20 on the NSE, making it one of the top gainers of the session. The rally comes amid reports of easing concerns over its rumored acquisition of Zentiva, alongside visible short covering in the F&O segment.
According to an FT report, private equity firm GTCR has struck a $4.8 billion deal to acquire Zentiva, a European generics drugmaker. This development put to rest market speculation that Aurobindo would lead the acquisition, which had earlier spooked investors due to potential high leverage and funding concerns.
With the overhang lifted, investors rushed back to Aurobindo, triggering a wave of buying. Derivatives data also indicate short covering in F&O contracts, further fueling the sharp rise in stock price.
At the time of writing, Aurobindo Pharma was trading at ₹1,089.20, up ₹38.90 or 3.70%, with a market capitalization of ₹63,418 crore. The stock has traded between ₹1,065 and ₹1,092.90 so far today, compared to its 52-week range of ₹1,010 – ₹1,592.
