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C.R. Sukumar

Hyderabad , Sept. 19

CASHING in on bull run in the markets and close on the heels of promoters of Aurobindo Pharma Ltd (APL) offloading sizable shares in the market to raise funds for converting their warrants into equity shares, Unit Trust of India (UTI) has sold 6,84,760 shares of APL, constituting 2.94 per cent holding.

The move assumes significance with the record date approaching for subdivision of APL shares from the face value of Rs 10 each to two shares of Rs 5 each.

The APL stock closed at Rs 578 on Bombay Stock Exchange (BSE) and at Rs 582 on National Stock Exchange (NSE) on Friday. It recorded a year high of Rs 650 and a low of Rs 200 on the BSE and Rs 645 and Rs 200 on the NSE.

According to Aurobindo Pharma officials, the company has received information from the Administrator of UTI that it has sold company shares in the secondary market from February 3 to September 8. Following this, the holding of UTI in APL has come down from 12,56,290 shares, amounting 5.4 per cent of the equity, to 5,71,530 shares, representing 2.45 per cent equity.

During last week of August, the company informed the bourses that two of its promoters have sold over four-lakh equity shares of the company in the secondary market. The APL Chairman, Mr Ramaprasad Reddy, had disposed 3,10,000 equity shares and reduced his holding to 61,39,002 shares, constituting 26.4 per cent. Similarly, the APL Managing Director, Mr Nityananda Reddy, had sold 95,000 equity shares, which reduced his holding to 17,14,735 shares, (7.38 per cent equity holding).

With the help of these sale proceeds, three of the core promoters of APL have consolidated their holdings in the company by converting the warrants allotted to them earlier into equity shares. The APL board had on September 4 allotted 9,50,000 equity shares, amounting 3.93 per cent of the company's equity, to the promoters at a price of Rs 226 per share by way of conversion of warrants.

Following the conversion, the holding of Mr Ramaprasad Reddy rose from 64.49 lakh shares or 27.74 per cent as on June 30 to 68,51,502 equity shares or 28.31 per cent of APL's equity. Mr Nityananda Reddy's holding has increased to 18,76,235 equity shares (7.75 per cent equity), while Dr Sivakumaran raised his holding to 7,34,568 equity shares (3.04 per cent).

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