A Shanghvi group official said the borrowing of Rs 600 crore was fully repaid in December 2018. A rating given to MJ Pharmaceuticals by CARE Ratings on December 26 remains outstanding. Valia, too, had raised debt pledging his Sun Pharma shares to invest through Suraksha Realty. While raising funds, investors were told that SFPL's total borrowings against the pledge of Sun Pharma shares will not exceed Rs 7,250 crore, and that the ratio of the market value to total borrowings would not fall below five times at all times.
Sun Pharma promoters have come under sharp focus after two whistle-blower letters alleged corporate governance lapses in the firm. Sun Pharma has denied any. According to documents, MJ Pharma is owned by four investment firms of Shanghvi — Sholapur Organics, Bonaire Exports, Nirmit Exports, and Jeevanrekha Investrade. Three were also promoter companies
of Sun Pharma till August 2018, when they were merged with SFPL.
These four companies
owned 19.1 stake each in FY17 while the rest of the shares were held by other investment companies of the Shanghvi family.
In December 2018, when MJ Pharma planned to raised Rs 750 crore through commercial papers, it had disclosed that it had received unconditional and irrevocable corporate guarantee from SFPL.
Documents from corporate affairs ministry show MJ Pharma invested in Dosti Flamingo project in Parel Sewri with 30 per cent stake in profit/loss while Suraksha held 10 per cent. MJ Pharma held 37.5 per cent stake in Dosti Business Park and another 12.5 per cent stake was held by Suraksha. A similar equity structure was followed in Dosti Presidio project. MJ Pharma also holds 37.5 per cent stake in Dosti Pinnacle and Dosti Vihar.