Borregaard exits Suven Life Sciences

Borregaard Industries Ltd, a Norwegean pharma player, has offloaded its entire 17.05 per cent stake ( 7.50 lakh equity shares) in the city-based Suven Life Sciences Ltd ( formerly Suven Pharma) in open market through BSE.

In a separate development, the board of Suven Life Sciences has decided to issue 5 lakh equity shares to 3 foreing institutional investors (FIIs) and 1 lakh equity shares to an NRI investor on preferential basis at a price of Rs 457 a share.

Borregaard, which has a business association with Suven since 1993, acquired 4 lakh equity shares through a preferential offer in March 2001 at a price of Rs 250 a share. It has acquired another 3.5 lakh equity shares in the market in the same year at around 250 a share.

According sources, Borregaard sold its entire holding of 7.5 lakh shares on December 16 at an average Rs 410 a share.

Of these shares, 3 FIIs seem to acquired over 5 lakh, while the rest was absorbed by other players the market. Close to 9 lakh equity shares were traded in Suven counter on the BSE on December 16.

"Their cost price was Rs 250 a share. Now they saw an opportunity and made a profit booking. It's purely their internal decision. However, our business relationship with Borreggard remains same," said Venkat Jasti, managing director of Suven Pharma, said.