Sequent to invest Rs 150 cr in Shasun

Gets board nod for investment in equity capital and convertible warrants of Shasun Pharma

Sequent Scientific Ltd has decided to invest up to Rs 150 crore in Shasun Pharma, in the form of equity capital and convertible warrants.

Shasun today announced the company's board of directors has decided to allot 35,00,000 equity shares of Rs 2 each at a price of Rs 110 per share and 71,00,000 convertible warrants of Rs 110 each with each warrant convertible into one equity share of Rs 2 each, to Sequent Scientific Ltd. An extraordinary general meeting (EGM) is being convened on May 21, 2014, to obtain the requisite approval of the shareholders.

Also, Sequent announced its board of directors had approved investment in Shasun Pharma, subject to statutory and other approvals. The board also approved issue of 2,000,000 warrants on preferential basis to the promoters/ promoter group, subject to the shareholders approval and necessary regulatory approvals.

Sequent has recently started a JV with Shasun Pharmaceuticals in which the latter had sold its facility in Vizag to the JV. Private equity investor Ascent Capital Advisors India also has picked up a minority stake in Shasun.