The Taro AGM outcome is a partial victory for SUNP, in our view. There was enough support to stall election of external directors. However, the
resolutions regarding appointment of other directors and indemnification protection were passed given expanded voting rights to promoter's family.
Given the expanded voting rights of the promoter family, at least 74% of all minority shareholders should have voted against the resolution. but fell short of the mark.
With a positive Supreme Court verdict for SUNP, its stake in Taro could increase from 36% currently to 53%. The acquisition of the majority stake by SUNP would be EPS accretive to the extent of INR4-5/share on an annual basis.
