Exim
Bank sells 10% in Caps Shreya to Shreya Life Sciences
Nisha
Das
5 December 2003
 Mumbai:
The Export-Import Bank of India has sold its 10-per cent
stake in Caps Shreya Pvt Ltd to Shreya Life Sciences for
an undisclosed amount. Caps Shreya, earlier known as Caps
Zimbabwe Ltd, was a joint venture between Rallis India,
Zimbabwe and Exim Bank. Following
the Rallis India's decision to exit from the pharmaceutical
business completely by selling its pharmaceutical division
to the Moscow-based non-resident Indian group company,
Shreya Impex Pvt Ltd, for a total consideration of Rs
49 crore in 2001, Exim Bank has been reviewing the fate
of its stake in the Zimbabwe company.
Says
Exim Bank chief general manager S R Rao: "Our intention
was not to make high returns from any of our equity investments.
We want to help the Indian companies to set up new firms
overseas. In the process, the bank has to support the
firm either in the form of debt or in the form of equity.
We had supported Rallis India to set up Caps in Zimbabwe
by picking up a 10-per cent equity in the project and
once the opportunity came we sold our stake in Caps back
to the new promoters."
 Caps
is one of the leading pharmaceutical marketing companies
in Zimbabwe. Rallis and Exim Bank had acquired 40 per
cent and 10 per cent stakes, respectively, in Caps from
the Zimbabwe government. The acquisition of Caps Zimbabwe
(now Caps Shreya) was the first overseas acquisition funded
by Exim Bank.
List of reports on Exim Bank
List of reports on Caps Shreya
|
