Knoll Pharmaceuticals Declares 1:1 Bonus Issue

Knoll Pharmaceuticals declared a 1:1 bonus issue on its Rs 8.1 crore equity at its annual general meeting (AGM) held in Mumbai yesterday. Reacting to shareholders' demands that future dividend should not be reduced, T Schatzle, chairman of the company, said, "It is not the company's policy to deprive shareholders of the dividend or bonus, but we follow a conservative dividend policy." An 80 per cent dividend was declared for 1997. "I will not rule out a bonus issue in the future but I will also not promise one," he added. Some shareholders alleged that Knoll Pharma had put off declaration of a bonus issue as it was giving the parent company, BASF AG, time to hike its stake in the Indian subsidiary from 40 to 51 per cent. Schatzle refuted all such allegations. Lupharma GmbH had made an open offer and acquired an additional stake of 11 per cent in Knoll Pharma.