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Our Bureau

Mumbai June 14 A merger seems to be on the cards between Aarti Industries (AI) and Aarti Drugs (AD), with the group management reportedly considering the move to unlock shareholder value.

The proposed merger move drove stock prices of both companies, just short of 20 per cent on the BSE.

Though it was also rumoured that a New-Delhi based drug major was looking at picking up equity in the company, a top official with the Aarti Group refuted the information doing its rounds among analysts.

The company official, however, said that the management was thinking in terms of merging Aarti Industries and Aarti Drugs, to reap benefits of investments made in scaling up its manufacturing plants to meet the US Food and Drug Administration requirements. The company may initiate plans for the merger this year and the combined entity can look at a profit of about Rs 100 crore, the official said.

At present, Aarti Drugs clocked revenues of an estimated Rs 315 crore and Aarti Industries about Rs 700 crore for the year ended March 7. Promoters, along with associates, hold about 58 per cent equity in both companies, respectively.

More Stories on : Mergers & Acquisitions | Pharmaceuticals

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