Shares of Zenotech Laboratories rose as much as 5% in the morning trade after the drug maker Sun Pharmaceuticals raised its stake in the company to over 50%.
Shares of Zenotech Laboratories rose as much as 5% in the morning trade after the drug maker Sun Pharmaceuticals raised its stake in the company to over 50%. Sun Pharmaceuticals Industries Ltd which is one of the promoters of Zenotech along with Daiichi Sankyo Company Ltd raised the shareholding in Zenotech Laboratories to 57.56% from 46.85%. Zenotech Laboratories shares were locked in the upper circuit after rising 4,92% to Rs 52.2.
The target company had issued a letter of offer on 21 June 2017 towards the issue of 2.66 crore equity shares of Rs 10 each. The acquisition of the shares was completed and intimation of credit of shares was received on 27 July 2017. However, Sun Pharmaceuticals Industries shares were little changed, trading down 1.28% at Rs 565.75 from its previous close of Rs 573.1 on BSE.
Sun Pharmaceutical has increased the shareholding in Zenotech from 46.85% of pre right issue capital to 57.56% of the post rights issue capital pursuant to allotment of 1.9 crore equity shares of Rs 10 each. The shares were issued at a price of Rs 45 each including a share premium of Rs 35 per equity share on rights basis to the existing equity shareholders of the target company in the ratio of 17 equity share for every 22 fully paid equity shares held on the record date.
Earlier, Sun Pharmaceuticals held 1.61 crore equity shares in Zenotech which is now increased to 3.51 crore equity shares amounting to 57.56% of post rights issue capital in Zenotech Laboratories.
Zenotech was incorporated in India on 15 June 1989, pursuant to the merger of erstwhile Ranbaxy Laboratories Ltd with Sun Pharmaceuticals Industries along with the existing promoter Daiichi Sankyo Company Ltd, became the promoter of Zenotech as on 24 March 2015.
Zenotech is a pharmaceutical company engaged in developing and producing generic pharmaceuticals and biological products in form of injectables and oral solids. The turnover of the target company stood at Rs 225.42 lakh for the year ended on 31 March 2017.