New Delhi, Nov 12: Pharma major Lupin Ltd has sought the approval of shareholders to increase investment limit by foreign institutional investors (FIIs) to 33 per cent. The Mumbai-based drugmaker said an extra-ordinary general meeting will be held on December 05 to consider the matter.
The shareholders will also consider the introduction of an employee stock option plan not exceeding one per cent of the paid-up capital of the company, amounting to 4,01,411 equity shares of the face value of rs 10 and delisting the equity shares from stock exchanges at Ahmedabad, Delhi, Jaipur and Kolkata.
Last week, the promoters of Lupin, Desh Bandhu Gupta and Associates, sold around four per cent of company's equity to FIIs for a consideration of about Rs 90 crore.
The promoters' shareholding in the company, consequent upon this divestment, would stand reduced to 50 per cent. The four per cent divestment in a total paid up equity shares of 4.014 crore for a consideration of Rs 90 crore resulted in an average realisation of Rs 562.50 per share.
The move, according to the company, was a part of the ongoing restructuring exercise of the promoter's holding in the pharmaceutical company.
Last month, the promoters had divested 12.55 per cent of their stake in the company to CVC International, a Citigroup global investments unit, for Rs 250 per share amounting to Rs 125.9 crore.
However, they had called off their discussions to divest another 12.5 per cent of the company's equity to Hong Kong-based Newbridge Capital Ltd for Rs 252 per share.
The placement of shares with CVC and Newbridge was part of the internal restructuring of the promoter group company to enable them in repaying the debt they owed to Lupin.
Lupin Chairman Desh Bandhu Gupta owes around Rs 250 crore to the company. The promoters have garnered Rs 215.9 crore from the two divestments.
Bureau Report