Suven to allot pref shares on Jan 19

Of the six lakh equity shares, the company will be issuing 2 lakh equity shares to Emerging Markets Management, 1.75 lakh equity shares to Aeneas Portfolio Company and 1.25 lakh equity shares to Batterymarch Financial Management Inc.

The company will also allot one lakh equity shares to a non-resident Indian investor, who currently holds 86,600 shares of Suven, at the same price.

According to Venkat Jasti, the managing director of the company, the Rs 27.42 crore preferential offer proceeds would be utilised to lay further emphasis on on R&D activities, and modernisation and expansion of of the manufacturing facilities to effectively pursue the challenges of the post 2005 IPR regime. The company's EGM on January 5 approved of the resolution to make the preferential offer.

Meanwhile, the company fixed January 23 as the record date for the purpose of its stock split. The company also decided to sub-divide its equity shares into a face value of Rs 2 each from the current face value of Rs 10.

The share split is aimed at higher liquidity in the market, besides facilitating the small investors to pick up the shares in the market.