Zenotech Lab in demand as Daiichi Sankyo-Ranbaxy deal triggers open offer

-

Zenotech Laboratories was locked at upper limit of 20% at Rs 112.95 at 12:43 IST on BSE after Japan's Daiichi Sankyo said it would make an open offer for 20% in the company, following its decision to buy controlling stake in Ranbaxy Laboratories.

Meanwhile, the BSE Sensex was up 245.97 points, or 1.65%, at 15135.99, on positive cues from Asian markets and on further fall in crude oil prices.

On BSE, 2.45 lakh shares were traded in the counter. The scrip had an average daily volume of 23,298 shares in the past one quarter.

The stock hit a low of Rs 96 so far during the day. The stock had a 52-week high of Rs 182.90 on 4 October 2007 and a 52-week low of Rs 72.40 on 24 March 2008.

The scrip had underperformed the market over the past one month till 10 June 2008, falling 9.73% compared to the Sensex's 11.69% decline. It had, however, underperformed the market in the past one quarter, falling 6.08% compared to Sensex's 7.68% fall.

The small-cap drug maker has an equity capital of Rs 34.35 crore. Face value per share is Rs 10.

Ranbaxy has a 46.95% stake in Zenotech.

Ranbaxy founders Malvinder Singh and Shivinder Singh today inked a deal to sell their combined 34.8% stake to Japanese drug maker Daiichi Sankyo at around Rs 730 a share, a 30% premium over Tuesday (10 June 2008)'s closing price. Daiichi also seeks to acquire majority of the voting capital of Ranbaxy. The total transaction value is expected at about Rs 14740 crore to Rs 19800 crore depending on the response to a mandatory 20% open offer which Daiichi will be making to Ranbaxy shareholders.

Following this news, other drug firms in which Ranbaxy Laboratories has stakes, also rose 5% to 12%. Orchid Chemicals & Pharmaceuticals (10.17% at Rs 253), Jupiter Bioscience (up 11.97% at Rs 141.20), and Krebs Biochemicals (up 5% at Rs 43.95), surged.

Zenotech Laboratories reported a net loss of Rs 21.70 crore in Q3 December 2007 as against net loss of Rs 0.92 crore in Q3 December 2006. Sales fell 30.3% to Rs 1.54 crore in Q3 December 2007 over Q3 December 2006.

Popular posts from this blog

IOB capitalises on hike in stake by LIC

-
Indian Overseas Bank rose 1.53% to Rs 46.45 at 10:31 IST on BSE, after the biggest domestic instutional investors Life Insurance Corporation of India hiked its stake in the state-run bank. The bank made this announcement after trading hours on Wednesday, 25 March 2009. Meanwhile, the BSE Sensex was up 126.19 points, or 1.31%, to 9,794.09. On BSE, 31,003 shares were traded in the counter. The stock had an average daily volume of 1.93 lakh shares in the past one quarter. The stock hit a high of Rs 47 and a low of Rs 45.95 so far during the day. The stock hit a 52-week high of Rs 156.80 on 2 May 2008 and a 52-week low of Rs 37.55 on 9 March 2009. The mid-cap bank stock had underperformed the market over the past one month till 25 March 2009, falling 3.17% as compared to the Sensex's 8.60% rise. It had also underperformed the market in the past one quarter, declining 33.94% as compared to the Sensex's 1.04% rise. The bank's current equ The current price of ...
Read more

Lok Housing & Constructions builds on fund raising plans

-
Lok Housing & Constructions jumped 6.99% to Rs 107.90 at 11:20 IST on BSE ahead of a board meeting to consider fund raising options from both foreign and local market, including an institutional placement. Meanwhile, the BSE Sensex was down 50.50 points, or 0.30%, at 15203.73. On BSE, 1.86 lakh shares were traded in the counter. The scrip had an average daily volume of 4.74 lakh shares in the past one quarter. The stock hit a high of Rs 115 and a low of Rs 102 so far during the day. The stock had a 52-week high of Rs 390.50 on 1 January 2008 and a 52-week low of Rs 96.25 on 12 June 2008. The scrip had underperformed the market over the past one month till 12 June 2008, falling 26.55% compared to the Sensex's 10.18% decline. It had also underperformed the market in the past one quarter, falling 31.39% compared to Sensex's 3.24% fall. The small-cap housing projects developer has an equity capital of Rs 42.88 crore. Face value per share is Rs 10. The current...
Read more

economic times picks

-
CMP: Rs 70.50 Target Price: Rs 90 CLSA Asia-Pacific Markets maintains an 'outperform' on Jagran Prakashan, with a 12-month price target of Rs 90. "An economic slowdown notwithstanding, improving literacy and income levels in Hindi heartland imply that drivers for Jagran's growth are still in place. With a 35% ad rate hike in 2008, Jagran continues to narrow the gap with its more expensive English rivals," the foreign brokerage said in a client note, after a Q&A reply from the management. "Rising newsprint prices have made Jagran cautious on launching new editions in FY09 and its focus this year will be profitability. While management has budgeted for a minor increase in FY10 newsprint prices, it believes that prices are likely to peak in Q2FY08 and decline thereon," it added. Neyveli Lignite CMP: Rs 117.15 Target Price: Rs 160 MERRILL Lynch has maintained its 'neutral' rating on Neyveli Lignite, with a price target of Rs 160 ...
Read more