Sunline re-issues forfeited shares

The biotech initiatives of the city-based Sunline Technologies under the stewardship of Jayaram Chigurupati, the former vice-president of Dr Reddy's Laboratories, has attracted a premium of Rs 30 per share with a face value of Rs 10 each.

The board of directors of the company has allotted 31,22,500 forfeited shares to friends and business associates at a price of Rs 40 per share, aggregating Rs 12.49 crore.

According to reliable sources, a good number of high networth individuals and stock brokers are among the list of allottees.

Sunline Technologies was in dormant state till the announcement of merger of Jayaram-owned Zenotech Laboratories Private Limited with it recently.

Subsequent to this move, Sunline at its board meeting a few days back appointed Jayaram as its managing director and chief executive officer.

Jayaram will be spearheading the biotech activities of Sunline Technologies, whose name will be soon changed as Zenotech Laboratories Limited.

The sources said that the company was working on a slew of biotech products, and two of them were expected to go for animal toxicity studies soon.

The company is waiting for the approval from Review Committee on Genetic Manipulation (RCGM) for the same. Upon completion of amalgamation process of Zenotech with Sunline Technologies, the latter will issue five shares for every one share of the former. This will enable Jayaram to hold controlling stake in the merged entity.

With this, Sunline's paid-up capital will go up to Rs 14.42 crore.

The merged entity, in its new avatar, 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. 'The company will soon start construction of the plant, and it is expected to be ready for commissioning by early 2005.