C. R. Sukumar
Hyderabad, July 7
P&J Cretechem Pvt Ltd, the Hyderabad-based chemicals manufacturer, has acquired a 44.38 per cent equity stake in Vasundhara Rasayans Ltd (VRL), one of the country's largest manufacturers of the antacid range of bulk drugs.
P&J has entered into a share purchase agreement with VRL promoters on Tuesday to acquire from them 14.1 lakh fully paid-up equity shares of Rs 10 each at a price of Rs 14 per share, aggregating to Rs 1.97 crore.
The Over the Counter Exchange-listed VRL manufactures the antacid range of bulk drugs, primarily dried aluminium hydroxide gel, aluminium hydroxide and magnesium tri-silicate. The main product of VRL - aluminium hydroxide gel, is one of the raw materials used by P&J.
For the fiscal ended March 2005, VRL suffered a loss of Rs 13.06 lakh on a turnover of Rs 6.28 crore, while its book value stood at Rs 12.46 per share.
Having agreed to acquire a 44.38 per cent stake of VRL, P&J now plans to make an open offer to the VRL shareholders to acquire from them 6.35 lakh fully paid-up equity shares of Rs 10 each at a price of Rs 14 per share.