Financial Daily from THE HINDU group of publications
Sunday, Apr 06, 2003
Financial Daily from THE HINDU group of publications Sunday, Apr 06, 2003 |
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Investment World
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Open Offers Matrix Labs: Reject Nath Balakrishnan
THE promoters of Matrix Labs have come out with an open offer to acquire 14,37,500 equity shares (face value of Rs 10) at Rs 276 per share. Shareholders of Matrix can retain their shares rather than participate in the open offer as the company's recent performance promises good growth prospects. The stock trades at Rs 288. The promoters are making this offer to consolidate their holdings in the company. In January, the promoters increased their holdings through a preferential allotment at Rs 107 per share as a result of which the share capital went up from Rs 7.18 crore to Rs 9.72 crore. Matrix is primarily engaged in the manufacture of active pharmaceutical ingredients and chemical intermediates. It counts among its customers companies in both regulated as well as non-regulated markets. The company also proposes to amalgamate Medicorp Technologies (in which it has acquired a controlling stake) and Vorin Labs with itself. Under the scheme of amalgamation, shareholders of the two companies will receive two shares of Matrix for every 13 shares held in Medicorp and Vorin Labs respectively. Both Vorin and Medicorp manufacture bulk drugs and intermediates. For the nine-month period ending December 2002, Matrix posted a healthy profit-after-tax of Rs 75.2 crore on net sales of Rs 183.5 crore, compared to a net profit of Rs 3.8 crore on net sales of Rs 75.6 crore for the same period in 2001. Earnings over the last four quarters discount the current market price by 2.75 times, which indicates that valuations are at the lower end of the spectrum. Considering the growth opportunities facing the company, the stock holds potential for appreciation. The offer, which opened on April 3 closes on May 2.
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