The promoters of Matrix Laboratories Ltd (MLL), N Prasad & Associates, are planning to consolidate their holding in the company from the current level of 38.26 per cent in the existing paid-up equity base of Rs 7.18 crore to 46.18 per cent on the expanded equity base of Rs 9.72 crore.

MLL Board has approved a resolution to offer 25.3 lakh equity shares of Rs 10 each at a premium of Rs 107 per share to the promoters and the associates on a preferential allotment basis. This would enable the Matrix promoters to consolidate their holding in the company to 46.18 per cent on the expanded equity base of Rs 9.72 crore. Consequently, the public holding in the company would come down to 39.72 per cent from the existing level of 53.17 per cent. MLL promoters would invest over Rs 27 crore into the company - Rs 2.53 crore towards equity and the balance as premium.

It may be recalled that Vorin Labs (VLL) and Medicorp Technologies India Ltd (MTIL) had merged with Matrix Laboratories in September. While the Rs 168-crore Vorin Labs is controlled by Ranbaxy Labs, the Chennai-based Shriram Group and the Hyderabad-based Rs 102-crore pharma company, Matrix Laboratories, jointly control the Rs 42-crore Medicorp Technologies.

Meanwhile, the Andhra Pradesh High Court has directed MLL, VLL and MTIL to call meetings of their respective shareholders on November 10 and seek their approval for the proposed merger. Subject to the required approvals from various regulators, the merger would be effective from April 1, 2002.