Lupin promoter D B Gupta to sell 12.5% stake to Newbridge

Our Corporate Bureau
10 July 2003

Mumbai: Lupin chairman Dr D B Gupta has said that he will be offloading nearly 5 million shares amounting to 12.55 per cent of Lupin''s equity at Rs 252 per share to Newbridge Capital for a total consideration of Rs 127 crore.

With this sale of shares, the promoter''s and associates'' stake in Lupin Ltd will go down to 42 per cent. Last week, Gupta had sold 12.55 per cent to CVC International, a Citigroup company, for a consideration of Rs 126 crore.

Gupta has accepted a non-binding letter of interest issued by Newbridge. The purchase by Newbridge is conditional upon various matters including approvals by the board of directors of Lupin and the investment committee of Newbridge Capital, completion of a due diligence process, receipt of regulatory approvals and execution of the final detailed agreements. The process is expected to be completed in the next two months.

This placement has completed the internal restructuring of the promoter group companies. Says Gupta: "Coming at a time when Lupin is on the threshold of a major global thrust, the partnership with Newbridge, a leading value investment firm with strong access to a global network and interests in the areas of life sciences and biotechnology, will add significant value to Lupin''s shareholders."

The proceeds from both the placements are expected to help reduce the debt burden of the company, which runs into a little over Rs 500 crore.