Dashtag, an unlisted UK based wholly owned indirect subsidiary of Schering-Plough Corporation, US, is acquiring seven lakh equity shares through preferential issue of Fulford (India) Ltd (FIL) for cash at an issue price of Rs 575 per share, aggregating to Rs 40.25 crore. The preferential issue represents 17.95 per cent of the post preferential issue capital. The shareholders of FIL have approved an issue on a preferential basis during an extraordinary general meeting held on November 15, 2006.
The present equity capital of FIL stood at Rs 3.20 crore and the same will increase to Rs 3.90 crore after the preferential issue. Currently Dastag is holding equity stake of 40 per cent in FIL and its post preferential issue stake will increase to 50.77 per cent of the total capital. FIL, a Mumbai based pharma MNC, is a specialising in dermatology, anti-histamines, antibiotics and oncology products. It has a subsidiary namely, Schering-Plough (I) Pvt Ltd.
The share capital of Dashtag stood at Great Britain Pound 125 lakh and is divided ino 125 lakh fully paid up shares with a nominal share value of pound 1 each. The company's total income for the year ended December 2005 declined to pound 0.38 lakh (Rs 33 lakh) from pound 3.12 lakh in the previous year. It earned a net profit of pound 0.34 lakh or Rs 29 lakh for 2005.
The total financial resources required for this offer, assuming full acceptance at the offer price will be Rs 44.85 crore and Dashtag has made firm financial arrangements for the maximum consideration by way o internal financial resources.