Morepen Revisits Adr Plan

Pharmaceutical major Morepen Laboratories is reviving its plan for an American depository receipts (ADR) issue.

"We are re-considering our earlier plan and a decision will be taken only after the current fiscal. We are waiting for a revival in market conditions here and abroad. The original size of the float was to be $70-80 million but we may rework the size as well," Sushil Suri, chairman and managing director, said.

The company was planning to raise funds from the US in the second quarter of fiscal 2000, but adverse conditions prompted it to shelve the plan.

Morepen had also appointed PricewaterhouseCoopers for bringing its accounts in line with the US Gaap since these are mandatory for an ADR float.

"Although the company does not require any huge funds for its expansion, the proceeds from the issue would be used to facilitate existing business and add new dimensions to its business lines," said Suri.

The company, which is on a brand acquisition spree, recently bought Burnol from Reckitt Piramal for Rs 8.9 crore.

Morepen has also set its sights on some US drug companies for possible buyouts and has appointed HSBC as merchant banker to scout for opportunities. The merchant banker is in the process of shortlisting the companies. "However, we are yet to initiate negotiations with them," Suri said.