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Singapore Govt takes 3% stake in Divi's Lab
Hindu Business Line,
16 May 2003
A FOREIGN institutional investor (FII), Government of Singapore, has taken around three per cent stake in the Hyderabad-based pharma company Divi's Laboratories in the last one month.
Market sources said the FII bought the shares from the open market between Rs 225-250 per shares.
Apart from the Singapore Government, several other domestic funds and FIIs have also bought shares from the open market.
The company early this year had come out with a public issue of 32 lakh shares at Rs 140 per share through the book-building route and the issue was oversubscribed around 19 times.
Active interest by FIIs and domestic funds have led the stock price of the pharma company to gain over 100 per cent over the issue price in just a couple of months after listing. In today's trading, the stock gained 12.18 per cent at Rs 319.65 with a volume of 4.41 lakh shares on the BSE and on the NSE it closed at Rs 318.05, up 11.44 per cent with a volume of 13.71 lakh shares.
Some of the other institutions that have bought the shares (both in the IPO and market purchases) include Templeton Mutual Fund, HSBC, Alliance Capital and Prudential
ICICI.
The active purchase by institutions have pushed the stock price from Rs 220 at the beginning of April to the current market price of Rs 319.65 on the BSE, a gain of 45 per cent in one and half month period.
At the end of March 2003, mutual funds and FIIs together had 11.52 per cent stake in the company. Sources said with the recent acquisition of shares from the market in the last one month, the holding by institutions is around 15 per cent (19 lakh shares) of the company's paid-up equity capital of Rs 12.81 crore (1.282 crore shares).
Analysts said the increased institution interest was due to good outlook of the company's pharma business. They added it was expected to report earning per share of Rs 40 per share for the financial year 2002-3.
The company is expected to announce its financial results next week.
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