The Hindu Business Line : Matrix Labs plans pref offer to ex-promoters of Docpharma

THE board of directors of Matrix Laboratories Ltd has approved a proposal to issue 35 lakh equity shares of Rs 2 each at a price of Rs 225 per share to the erstwhile promoters of the Belgium-based Docpharma NV, which was recently acquired by the company.

In a press release on Monday, Matrix Labs said the allotment, to be made on preferential basis in accordance with the SEBI guidelines, will fetch the company Rs 78.75 crore, and would be used to meet corporate requirements.

The preferential offer of equity shares is subject to a three-year lock-in.

According to the company, the interest shown by the erstwhile promoters of Docpharma to acquire Matrix Labs shares at a premium to the current market price, with a three-year lock-in period, reflects the faith and commitment by them in Matrix. It also reflects Matrix's firm belief in the partnership approach in using the expertise of the core team of Docpharma, the release said.

Both Matrix Labs and the former promoters of Docpharma, who continue to play an active role in spearheading the operations of Docpharma even after it has been acquired by Matrix Labs, consider the proposed preferential offer significant, the release said.

Matrix Labs expects to benefit from the rich experience of the erstwhile Docpharma promoters in the European market and their equity participation in the company.

Following the preferential offer, the paid-up equity of Matrix Labs will increase to Rs 30.64 crore from Rs 29.94 crore.

The company proposes to convene an extraordinary general meeting on December 19 to seek the shareholders' approval for the proposed preferential offer, the release said.

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