Merind

Price on 13/02/98: Rs 126.6

Price on 20/02/98: Rs 158.20

Merind was on the block sometime ago, but with no suitors, the selling idea was withdrawn. The recent news about Tatas having struck a deal to sell 47 per cent of their stake to Wockhardt has sent the scrip soaring on the bourses. It has gained 24.96 per cent in the last one week. Earlier, based on a study done by KPMG Peat Marwick, the valuation had been fixed at Rs 160-170 which was not acceptable to the Tatas. They were expecting an offer price in the range of Rs 250-300. So, the Tatas appointed JM Financial and Investment to make a fresh valuation on the company. After rejecting most of the offers in the range of Rs 150-170, the Tatas seem to have finally been offered the kind of remuneration they were looking for.

 

Market sources peg the offer made by Wockhardt between Rs 250-300 for a total consideration of Rs 42 crore. As such, Merind has decided to hive off Tata Pharma as an export division. It is upgrading its Vitamin B12 and dexamethasone manufacturing facilities. A merger with Wockhardt would mean an easier flow of funds into the company.