Biotech, one of the leading manufacturers of pharmaceutical
gelatine in the world supplies its product to pharma companies
in the US and Europe. Oppenheimer Fund, another leading
oversees fund, has also picked up a minority stake in
the company through a block deal, according to a source
close to the development of the deal.
Biotech chairman Nitin Sandesara says these funds have
acquired the shares from the open market and it does not
affect the promoters'' holding in the company. "Due
to the recent GDR [global depository receipt] issue in
the overseas market, the promoters'' holding in the company
has been reduced from the earlier 46.7 per cent to 39.1
per cent." Currently, the Indian public holds a 38.79-per
cent stake in the company while private corporate bodies
hold 13.09 per cent.
has issued 2,328,045 GDRs, each representing six equity
shares of Rs 2 each amounting to Rs 67.5 crore at a price
of $6.6 per GDR. The GDRs will be listed on the Luxembourg
Stock Exchange shortly after completion of regulatory
requirements. With the GDR issue the equity share capital
of the company has increased from Rs 14.33 crore to Rs
says in order to maintain the promoters'' holding post
the GDR issue, the board of directors has decided to offer
42,00,000 equity shares of Rs 2 each on a preferential
basis to the promoters, at a price determined under the
guidelines issued by the Securities and Exchange Board
says the proceeds of the GDR issue will be utilised to
fund the expansion programme envisaged by the company.
The company has plans to increase the capacity of gelatine
by 70 per cent. The total cost of the project, around
Rs 188 crore, is being funded through the GDR proceeds,
internal accruals and borrowings.