Matrix Labs Chief Makes Open Offer

The chairman of Matrix Laboratories Ltd, formerly Herren Drugs & Pharmaceuticals, N Prasad, has made an open offer to acquire 14.37 lakh equity shares (representing 20 per cent of the paid-up capital) of the company at a price of Rs 29 a share.

The offer was pursuant to the agreement that Prasad had entered into with two executive directors of the company to acquire 7.32 lakh shares (forming 10.19 per cent of the paid-up capital) from them at a price of Rs 17 a share through a negotiated deal. The open offer to the public shareholders is slated to open on January 25 and closes on February 23. Prasad already holds 4.86 per cent stake in Matrix Labs which changed hand about an year back.

The scrip is quoting at Rs 29-30 on the Bombay Stock Exchange at present. The company recorded net profit of Rs 3 crore on a turnover of Rs 57 crore in the first-half of the current fiscal. It expects to touch a turnover of RS 100 crore for the current fiscal.

The bulk drugs producer, after the change of management last year, has taken some strategic initiatives such as restructuring the product profile, focusing on export markets and stepping up process R & D activity to improve the bottomline.

Matrix has now focussed on wide range of anti-AIDS and anti-depressants, apart from anti-bacterials such as ciprofloxacin, norfloxacin, pefloxacin, moxifloxacin, levofloxacin and gatifloxacin.

It is also planning to upgrade its production facilities as part of its strategy to concentrate more on regulated markets. The acquirer, Prasad, who has been in the pharma industry for the past 15 years, plans to further intensify the R & D efforts of the company, so as to enlarge the product range.