AstraZeneca plans to delist, share price falls

AstraZeneca Pharma India Ltd has informed the Bombay Stock Exchange (BSE) that it is considering delisting. "The Board of Directors met on March 05, 2014 to consider the delisting proposal. After discussion, it was decided to seek additional information from the promoter - AstraZeneca Pharmaceuticals AB, Sweden (AZP AB). Pending receipt of such additional information, consideration of the promoter's letter dated March 01, 2014 was deferred," it informed the exchange in a written communication on March 5.

Analysts see the AstraZeneca case as one of an MNC wanting greater control over its India operations and doing away with its accountability to Indian shareholders.

They also see an element of uncertainty about AstraZeneca's future, which is why they feel the stock declined on the BSE in early trade on Thursday, March 6. By 2:48 pm on Thursday, the stock was down 8.50 per cent, trading at Rs 1,073 against a previous close of Rs 1173.65.

It had opened at Rs 1076.60 and touched a high of Rs 1,099 before dipping. Just two days ago, on March 4, the stock had hit a 52-week high at Rs 1,285 ahead of the board meeting on Wednesday to consider the delisting proposal with the expectation that the delisting price would be high and attractive for the shareholders.