Ranbaxy buys 15% stake in Jupiter Bio

Jupiter Bioscience, a manufacturer of specialised organic compounds, on Tuesday said it has allotted 14.91 per cent stake to Ranbaxy Laboratories through issue of share warrants on preferential basis for Rs 46.70 crore (Rs 467 billion).

The board of directors at its meeting on Monday allotted 31.77 lakh equity share warrants representing around 14.91 per cent of the expanded issued share capital of the company to Ranbaxy Laboratories on a preferential basis at Rs 147 each.

The said equity share warrants are convertible into equity shares within 18 months from the date of allotment, Jupiter Bioscience said in a communique to the Bombay Stock Exchange.

Jupiter Bioscience has received 20 per cent of the total consideration up front. The company had received the board's approval in April for allotting the stake to Ranbaxy Laboratories through preferential issue of securities.

Ranbaxy acquired the stake in Jupiter Bioscience as part of its product portfolio expansion through partnerships and strategic investments.

The proposed warrant allotment is a part of the term sheet signed between the companies earlier, which includes forging a strategic business tie-up on peptide pharmaceuticals for the global market.

While the shares of Ranbaxy were trading at Rs 390.75, up 2.25 per cent, Jupiter Bioscience scrip was down 1.67 per cent at Rs 182.50 on BSE in morning trade.