Matrix to issue equity shares to Docpharma promoters

The board of directors of Matrix Laboratories Limited has proposed to issue 35 lakh equity shares of Rs 2 each at a price of Rs 225 per share (including premium) to the erstwhile promoters of Docpharma NV, Belgium.

The allotment, to be made on a preferential basis in accordance with the Securities and Exchange Board of India (Sebi) guidelines, will fetch the company an amount of Rs 78.75 crore, and the same will be utilised to meet the corporate requirements. The preferential allotment of equity shares is subject to a three-year lock-in period.

Subsequent to the preferential offer, the paid-up capital of the company will be increased to Rs 30.64 crore from the present Rs 29.94 crore. The dilution in the equity will be to the extent of 2.28 per cent. The company has called for an extraordinary general meeting (EGM) on December 19, 2005, to seek the shareholders' approval for the offer.

The preferential offer is significant from the perspective of Matrix as well as the erstwhile promoters of Docpharma, who continue to play an active role in spearheading the operations of Docpharma even after it was acquired by Matrix Laboratories.

Matrix expects to benefit from the rich experience of the erstwhile Docpharma promoters in the European markets and also through their equity participation in the company.

It is also a reflection of Matrix's firm belief in partnership approach in utilising the expertise of the core team of Docpharma, according to a company press release here on Monday.