Matrix Sews Up Vorin, Medicorp Merger

The city-based Matrix Laboratories has now emerged as a major bulk drug player in the country with the completion of merger of Vorin Laboratories and Medicorp Technologies India with it.

The merger came into effect retrospectively from April 1 last year following the approval given by the Andhra Pradesh and Madras high courts last month.

The board of Matrix Laboratories at its meeting on Sunday fixed June 25, 2003, as the record date for allotment of shares to the shareholders of Vorin and Medicorp at a ratio of two equity shares of Matrix for every 13 shares of Vorin and Medicorp held.

 

After the allotment of shares, the paid-up capital of Matrix will go up to Rs 12.30 crore from the pre-merger equity base of Rs 9.72 crore.

The promoters will have about 50 per cent stake in the expanded equity base of Matrix.

The merged entity with six manufacturing units, including a US FDA-approved facility on the outskirts of the city, produces a wide range of bulk drugs.

On a consolidated basis, Matrix Labs recorded a net profit of Rs 97 crore on a turnover of Rs 417 crore for fiscal 2002-03.

The company is expected to achieve a turnover of over Rs 500 crore during the current fiscal year. The merged entity has a long-term debt of Rs 65 crore, besides working capital loans amounting to Rs 60 crore.

Matrix Laboratories, which was in the limelight recently with an exceptional performance, is currently enjoying one of the highest margins in the bulk drug industry on the back of certain high-value anti-depressant and anti-asthma bulk drugs, besides new generation anti-bacterials.