DIL's board okays amalgamation scheme with subsidiary Fermenta Biotech

Pharma and biotech firm DIL Ltd today said its board had approved a scheme to merge its subsidiary Fermenta Biotech Ltd with itself.

The board of directors at its meeting held on June 21 has approved an amalgamation scheme with Fermenta Biotech Ltd (FBL), the company said in a statement.

Under the scheme, 100 shares of DIL of Rs 10 each would be issued for every 1,006 shares of FBL of Rs 10 each.

However, the company said that its board had earlier this week recommended split of DIL's shares to face value of Rs 5 each, and issue of bonus shares in the proportion of 1:1.

Therefore, the number of shares to be issued to FBL shareholders would undergo a change and now 100 shares of DIL would be issued for every 251 shares of FBL, it added.

FBL is engaged in manufacturing and marketing of bulk drugs including Vitamin D3 and enzymes. DIL holds 91.2 per cent equity stake in FBL, which has two manufacturing facilities.

"The amalgamation will be value accretive to shareholders of DIL Ltd, as they would have directly access to the core business of the group," the statement said.

The post-merger shareholding of the promoters in DIL Ltd would be 58.93 per cent from existing 62.59 per cent.