Singapore Fii Arisaig Takes 5.72 Per Cent In Ub

Two Singapore-based foreign institutional investors (FIIs) have taken over five per cent stake in two leading Indian companies, Dr Reddy's Laboratories Ltd (DRL) and United Breweries Ltd (UBL), both currently expanding operations.

While the Government of Singapore Investment Corporation Pte Ltd, has taken 6.58 per cent stake in DRL by acquiring the company's recently issued American Depository Shares (ADS), Singapore-based Arisaig Partners (Asia) Pte Ltd has taken 5.72 per cent stake in UBL through open market operations in India.

The Rs 490 crore pharmaceuticals major DRL had issued 1.15 crore ADS (each equivalent to half a share of Rs 10) towards the end of March, and raised $150 million or Rs 690 crore roughly. DRL said the Government of Singapore Investment Corporation Pte Ltd has acquired 25.16 lakh shares of the company.

Alongside, Arisaig Partners have acquired in excess of 21.6 shares of the country's largest beer company UBL through two accounts: Arisaig India Fund Ltd and Arisaig Asian Small Companies Fund Ltd.

While the former holds 4.5 lakh shares or about 1.19 per cent stake, the FII has amassed 17.1 lakh shares or 4.53 per cent stake through the other account. The FII informed the company about its acquisition towards the beginning of April.

Marketmen said, these FII investments do not appear to be aimed at mounting any takeover threat on the companies. "In their respective businesses, both UBL and DRL hold leading positions, and the FIIs consider these companies good for investment," an analyst said.

The analyst added, both UBL and DRL are on an expansion drive. "UBL has said that it would rope in a foreign equity partner by offering 26 per cent stake for expansion of business, while DRL has taken over Cheminor Drugs and American Remedies in the recent past. With these mergers, DRL's turnover is set to grow to Rs 800 crore," the analyst added.