Financial Daily from THE HINDU group of publications
Tuesday, Oct 07, 2003
Financial Daily from THE HINDU group of publications Tuesday, Oct 07, 2003 |
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Corporate
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Restructuring Veronica Labs to expand capital base Our Bureau
Mumbai , Oct. 6 REALIGNING its business strategy, Mumbai-based Veronica Laboratories Ltd (VLL) plans to expand its capital base and become debt-free. The company would convert unsecured loans aggregating Rs 3.5 crore into equity as per the guidelines of the Securities & Exchange Board of India, according to Mr Bipin Shah, Managing Director, VLL. Addressing press persons here, Mr Shah said the company had already obtained shareholder approval today for implementing its plans. VLL would also issue fully convertible debentures aggregating to Rs 5 crore with a 7.5 per cent interest per annum. "We will increase our authorised capital from Rs 10.25 crore to Rs 20 crore. The board has also decided to issue equity shares on a preferential basis to corporate bodies with a view to restructure the high cost debt of the company," Mr Shah said. The expansion in capital base will enable VLL to refocus its efforts on manufacture and marketing of ayurvedic drugs from allopathic drugs. A fund of Rs 5 crore has been earmarked for conducting clinical trials of Herbovera, an immuno modulator medicine for AIDS & HIV patients. The company recently obtained FDA approval from the Maharashtra Government for this drug. Besides this, VLL would foray into neutraceuticals and cosmetology drugs. "Our vision 2010 will see VLL focus on green medicines (ayurveda). Reducing our liabilities and the introduction of new product lines in these segments will allow us to achieve a turnover of Rs 100 crore by 2010," Mr Shah said. The company recorded a turnover of Rs 10.4 crore for the quarter-ended September 30, and a net profit of Rs 85 lakh during the same period. VLL expects to close the fiscal 2002-03 at Rs 28 crore in turnover compared to Rs 23 crore posted during 2001-02, added Mr Shah.
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