The Hindu Business Line : RPG’s revamped pharma business may list by April

Mumbai, Feb. 19 After restructuring its pharmaceuticals and investment businesses into two different entities, RPG Life Sciences hopes to get its pharmaceuticals business listed around March or April.

The broad regulatory approvals have been received, said Mr Arvind Vasudeva, Managing Director of the restructured RPG Life Sciences (that now holds only the pharmaceuticals business), told Business Line.

The renamed RPG Life Sciences will seek to raise funds to support the company’s growth into the regulated pharmaceutical markets like the US, Europe and Japan, he said.

The funds, that could be raised from banks, would go into capacity building to support expansion in the active pharmaceuticals ingredients (API), biotech and global generic drug segments, he added.

Clean balance sheet

The erstwhile RPG Life Sciences had kicked off a process of restructuring to clean up the balance sheet of its pharma business, to help it attract funds to grow the business.

Investments made by Instant Trading and Investment Company Ltd, the former RPG Life Science’s wholly owned subsidiary, was having an impact on the pharma business.

In fact, last year, the company’s auditors had said that they were unable to comment on whether investments made by the company in the investment arm could be realised.

As part of the restructuring, the group’s pharmaceuticals business was spun-off into RPG Pharmaceuticals Ltd, while the investment company - Instant Holdings Ltd - remained with the erstwhile RPG Life Sciences. Subsequently, the name of the erstwhile RPG Life Sciences and investment business was changed to Brabourne Enterprises Ltd, and RPG Pharmaceuticals was renamed RPG Life Sciences.

Shareholders in the erstwhile RPG Life Sciences will get an additional share in the pharmaceutical company, Mr Vasudeva explained. The pharmaceutical business clocked revenues of Rs 95 crore for the nine months ending December 2007.

Investments held by the erstwhile RPG Life Sciences (excluding US 64 bonds) was sold to Instant Holdings Ltd effective from April 1, 2007, at a consideration of Rs 53 crore, the company said. And assets and liabilities of the Instant Trading and Investment Company Ltd were also transferred to Instant Holdings Ltd, now under Brabourne. Instant Trading and Investment Company Ltd stands dissolved without winding up, the company clarified.

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