Suven EGM okays pref issue

The extraordinary general meeting (EGM) of Suven Life Sciences held here today approved of the resolution to offer six lakh equity shares on preferential basis to various strategic investors at a price of Rs 457 per share.

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 issue one lakh equity shares to an NRI investor, who currently holds 86,600 shares of Suven, at the same price. The offer price has been worked out as per the SEBI formula for preferential issues.

The EGM also approved of the resolution for sub-division of the equity shares of the company into a face value of Rs 2 each from the current face value of Rs 10 each.

The share split is aimed at higher liquidity in the market, besides enabling the small investors to pick up the shares in the market, according to Venkat Jasti, the managing director of Suven.

The Rs 27.42 crore preferential offer proceeds will be utilised to lay further emphasis on on R&D activities, and modernisation and expansion of the manufacturing facilities to effectively pursue the challenges of the post 2005 IPR regime, Jasti said.

It may be recalled that Suven has already decided to merge its 100 per cent subsidiary, Suven Synthesis, with it.