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Pharma major IPCA Laboratories Ltd is picking up 23 lakh shares by way of a preferential allotment in Krebs Biochemicals & Industries Ltd at a price which is at a discount to its current market price.
The Hyderabad-based Krebs Bio describes itself as a "biochemical company that establishes commercially viable biotech processes for application in medicine, agriculture and industry''.
IPCA said that it would make an open offer to the shareholders to the extent of 26 per cent in Krebs Biochemicals which saw its share price spurt by nearly 10 per cent on the BSE.
In a communication to the stock exchanges, IPCA Labs said that it would subscribe to 23,00,000 fully paid up shares of ₹10 ech on a preferential allotment basis at ₹54 per share, including a premium of ₹44 per share, in Krebs Biochemicals & Industries, subject to requisite approvals. The company is listed on both BSE and NSE.
IPCA said it would also make an open offer to the public shareholders to the extent of 26 per cent of the diluted equity share capital of Krebs Biochemicals & Industries.
In a separate communication to the stock exchanges, Krebs Bio said that it was making preferential allotment of shares at the same price (₹54) to promoter-shareholder Hemalatha Ravi (6.5 lakh shares) and to Pinky Ventures Pvt Ltd (6 lakh shares) which the statement described as "strategic investor'', taking the total allotment to 35.50 lakh shares.
In addition, Hemalatha Ravi is proposed to be allotted 6.80 lakh warrants convertible into equity shares at the same price.
Shares of Krebs Bio spurted 9.97 per cent or ₹6.25 to ₹68.95 on the BSE. However, while there were orders to buy 1.13 lakh shares of Krebs Bio, there were no sellers. IPCA Labs shares were trading at ₹680.25, a gain of ₹10.40, on the exchange.
The company has not shown any income from operations during the 15 months ended September 30, 2014 and also in the quarter ended December 31, 2014.
In a note along with the standalone results for the quarter ended December 2014, the company said Unit I of the company was reopened on October 3 and Unit II was reopened on December 15, 2014 and in both the units, repair and maintenance works were being carried out. Unit II was expected to be operational by the first week of March.
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