Dr. Reddy's Hits Life High On Reports Of Acquiring Novartis India
Novartis AG has commenced the strategic review that will include an assessment of its 70.68% shareholding in the India unit.
![<div class="paragraphs"><p>(Source: Novartis Website) </p></div>](https://media.assettype.com/bloombergquint%2F2024-02%2F07ba5892-7f80-41f5-a148-627dbd1d1156%2Fabout_cardholder_jpg.webp?auto=format%2Ccompress&w=200)
Shares of Novartis India Ltd. hit a 14-year high on Monday amid reports that Dr. Reddy's Laboratories Ltd. is in a race to acquire Novartis AG's stake in the India unit.
Dr. Reddy's stock also hit an all-time high following the reports. However, the Hyderabad-based pharmaceutical major has not commented on the matter yet.
Novartis has commenced the strategic review that will include an assessment of its 70.68% shareholding, a Novartis India spokesperson told NDTV Profit. "No decision has yet been taken regarding the eventual outcome. In the meantime, it is business as usual."
![Dr. Reddy's Hits Life High On Reports Of Acquiring Novartis India](https://media.assettype.com/bloombergquint%2F2024-02%2F5c1f7e37-3d54-4528-a920-d1ae284bf22a%2F500672__1_.png?auto=format%2Ccompress)
On the BSE, Novartis India's stock rose as much as 10.87% during the day to Rs 1,148 apiece, the highest since Feb. 11, 2000. It was trading 6.23% higher at Rs 1,110 per share, compared to a 0.15% advance in the benchmark Sensex at 10:35 a.m.
The share price has risen 85.45% in the past 12 months. The total traded volume so far in the day stood at 17 times its 30-day average. The relative strength index was at 77.33.
![Dr. Reddy's Hits Life High On Reports Of Acquiring Novartis India](https://media.assettype.com/bloombergquint%2F2024-02%2F25fd3cc2-e042-49a1-8732-a7ab233c6a19%2FDRREDDY.png?auto=format%2Ccompress)
Shares of Dr. Reddy's rose as much as 2.17% to Rs 6,453.95 apiece on the NSE. It was trading 1.36% higher at Rs 6,403.30 per share, compared to a 0.22% advance in the benchmark Nifty 50 at 10:54 a.m.
The share price has risen 43.42% in the past 12 months. The total traded volume so far in the day stood at 18.9 times its 30-day average. The relative strength index was at 72.80.
Seventeen out of 42 analysts tracking Dr. Reddy's have a 'buy' rating on the stock, 11 recommend a 'hold' and 14 suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 8.2%.