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To: Mohan Marette who wrote (8015)	10/8/1999 10:39:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

CompanyWatch: Strides Acrolab - To list on BSE & BgSE stridesarco.com Strides Arcolab plans to list on Bombay and Bangalore bourses Baburajan K/Anju Ghangurde (fe) Bangalore/Mumbai, Oct 8: Strides Arcolab Ltd, which recently merged Plama Laboratories and Remed Laboratories with itself, is planning to list its shares at the Mumbai, Bangalore and Mangalore bourses shortly. A top Strides official said the maiden listing price would be around Rs 400 per share, taking into account the current scrip price of Plama Laboratories on the BSE and the swap ratio for the merger. Strides had proposed a swap ratio of one share of Strides Arcolab for every eight shares of Plama Laboratories and two shares of Strides Arcolab for three shares of Remed Laboratories. The official said that the company wanted to offer value to the Plama Lab shareholders numbering around 7,500. "We will list our shares in all the bourses where Plama Lab equity shares were traded prior to the merger. The company has already sought consent from these bourses to trade its shares," he added. The record date has been fixed at November 12, for the purpose of determining the Plama Lab shareholders to whom new shares in Strides Arcolab could be issued. To protect the minority shareholders, the High Courts of Mumbai and Bangalore are believed to have asked the Strides group to list the shares in all leading bourses, while approving the merger of Plama and Remed Labs with Strides Arcolab. Marketmen in Mumbai said that the proposed listing plans also "clear a cloud of confusion" over the new entity's future on the bourse. "There were doubts on why Strides Arcolab had not indicated where it would be listed. As a result, some traders were treading cautiously on this counter as they were concerned about unpleasant regulatory action. That will be settled now," an analyst with a leading brokerage firm added. The Plama scrip was hovering at Rs 57.75 on the BSE on Wednesday against its 52-week high/low of Rs 58/Rs 3. The scrip closed at Rs 54 against an opening price of Rs 55.55 on Wednesday, while the volume traded was more than 2.34 lakh. "Shares of the merged company having a combined turnover of Rs 130 crore will be a good bet for investors," said a leading BgSE broker. According to marketmen, the sudden spurt in the Plama Lab share prices was expected. "With over 16,000 shares changing hands, the scrip on September 9 was hovering at Rs 34.50 against a 52-week high and low of Rs 40 and Rs 3 respectively on BSE before reaching the Rs 46 mark during the third week of September," they added. From a low of Rs 32.20 in the first week of September the Plama scrip closed at Rs 54 on the BgSE on Wednesday with a volume of 6,000 shares. On BgSE the 52-week high of the scrip was Rs 55 on Wednesday, while the 52-week high on September 6 was Rs 38. Arcolab SA of Geneva had invested in the equity capital of Strides Arcolab. "Following the merger, there will be no substantial changes in the equity structure of the company. For the time being, we are not pursuing any fund raising programme, although our expansion will continue," the official said. Strides has marketing alliances with Remed SA of Belgium and Pharmagal Engineering Srl of Italy. At present the group has facilities for R&D, bulk drugs, formulation parenterals and soft gelatine capsules. The revenue of Strides for 1995-96 was Rs 48.42 crore and the profit after tax Rs 4.78 crore.