The promoters of the Hyderabad-based Neuland Laboratories have decided to buy 2.29 lakh equity shares of the company, representing 4.25 per cent of the paid-up capital, at a price of Rs 60 per share from the Unit Trust of India (UTI). The company has a paid-up capital worth Rs 5.38 crore.
The deal, negotiated through ICICI Venture Funds, is expected to go through in the next few days.
The promoters' holding in the company at present stands at 30.53 per cent. Though the price at which the promoters are acquiring the shares is close to the current market price, it seems to be a decent deal for the promoters. This is because a European company had taken 10.90 lakh shares (20 per cent stake) of Neuland at a price of Rs 217 per share through a preferential offer in March 2000.
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Neuland Labs has reported a net profit of Rs 2.12 crore on a turnover of Rs 50 crore for the first half of the current fiscal. Fifty per cent of the turnover had come from exports in the first half. The share of exports in the turnover is expected to go up to 70 per cent in the second half, thanks to the surge in ciprofloxacin exports.
Ciprofloxacin, rantidine and salbutamol sulphate are the major products of the company. The company is making efforts to set a center for steroid research and development with the financial assistance from the department of science and technology.