Zenotech Labs to merge with Sunline Tech

The city-based Sunline was acquired by the present management in the year 2000 and has been, for quite sometime, exploring the possibility of entering into biotechnology.

After leaving Dr. Reddy's Laboratories in March this year, Jayram Chigurupati took over the charge as CEO at Zenotech Laboratories. Sunline Technologies has a paid-up capital of Rs 2.31 crore, whereas Genotech's paid-up capital stood at Rs 1.83 crore.

Upon amalgamation of Zenotech with Sunline Technologies, the latter will issue 5 shares for every one share of the former. With this, Sunline's paid-up capital will go up to Rs 11.3 crore.

According to sources associated with the development, the promoters of the both the comanies will continue to hold their stakes in the merged entity which will be called Zenotech Laboratories Limited.

Zenotech proposes to set up a Rs 20 crore manufacturing facility in the city to produce biotech products with a focus on oncology and neurology segments.

"We will start the construction activity in the first quarter of next year, and the plant will be commissioned a year after that. The project will be funded with a combination of equity and debt, the details of which will be finalised soon," said Jayram Chigurupati.