Lupin Promoters Sell 4% Equity Stake To FIIs

Mumbai, November 4 | Updated: Nov 5 2003, 05:30am hrs
The promoters of Lupin Ltd Desh Bandhu Gupta and associates have sold close to four per cent of Lupins total equity to foreign institutional investors (FII) for a total consideration of about Rs 90 crore.

The promoters shareholding in the company, consequent upon this divestment, would stand reduced to 50 per cent, a Lupin release said. Enam Securities Pvt Ltd were the brokers to the deal.

The Lupin scrip on the Stock Exchange, Mumbai opened at Rs 540.85 and touched a high of Rs 580.00 to close at Rs 555.05, registering an increase of 2.63 per cent.

The four per cent divestment in a total paid up equity shares of 4.014 crore for a consideration of Rs 90 crore, results in an average realisation of Rs 562.50 per share.

The promoters had earlier divested 12.55 per cent of their stake in the company to CVC International, a Citigroup Global Investments unit for Rs 250 per share amounting to Rs 125.9 crore.

However, they had called-off their discussions to divest another 12.5 per cent of the companys equity to Hong Kong-based Newbridge Capital Ltd for Rs 252 per share.

The placement of shares with CVC and Newbridge was part of the internal restructuring of the promoter group company to enable them in repaying the debt they owed to Lupin.

Lupin Ltd chairman, Dr Gupta, owes roughly Rs 250 crore to Lupin.

The promoters have garnered Rs 215.9 crore from the two divestments including Tuesdays sale of four per cent stake made so far. Lupins debt as on March 31, 2003 stands at Rs 587 crore, and the repayment would substantially bring down the interest burden, analysts said.