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C.R. Sukumar

Hyderabad , Aug. 28

THREE of the core promoters of Aurobindo Pharma Ltd (APL), the fifth largest Indian pharmaceutical company, are planning to consolidate their holdings in the company through the preferential allotment route.

The company informed the National Stock Exchange on Thursday that the APL Chairman, Mr P.V. Ramaprasad Reddy; the Managing Director, Mr K. Nityananda Reddy; and Whole-time Director, Dr M. Sivakumaran, together propose to acquire 9.5 lakh equity shares of the company, amounting to 3.93 per cent equity, at a price of Rs 226 per share. The proposed date of acquisition is September 4, the company said.

The APL stock closed at Rs 430 on Thursday, recording a gain of Rs 18.60 over the previous close, an increase of 4.52 per cent. As many as 3,74,762 shares of the company changed hands on the NSE, registering a turnover of Rs 16.2 crore. Mr Ramaprasad Reddy, who held 64.49 lakh shares amounting to 27.74 per cent holding as on June 30, 2003, proposes to acquire 7,12,500 equity shares through preferential offer. His holding after the proposed acquisition would amount to 28.31 per cent.

While Mr Nityananda Reddy proposes to acquire 1,61,500 equity shares, his shareholding after the proposed acquisition would increase to 7.75 per cent of APL's equity. With the proposed acquisition of 76,000 equity shares, the holding of Dr M Sivakumaran would increase to 3.04 per cent.

As on June 30, 2003, the APL promoters, directors, associates and their relatives together held 61.38 per cent equity stake. Templeton Strategic Emerging Markets Fund LDC, which joined the company as a strategic investor, currently has a holding of 9.99 per cent under the FIIs category.

Meanwhile, in a separate communiqué to stock exchanges, the company said its Chairman, Mr Ramaprasad Reddy, had disposed of 3,10,000 equity shares of the company. This has reduced his holding in the company to 61,39,002 shares, constituting 26.40 per cent. The APL Managing Director, Mr Nityananda Reddy, has also sold 95,000 equity shares of the company, which reduced his holding to 17,14,735 shares, amounting to 7.38 per cent equity holding.

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