Zenotech Laboratories Ltd today said it will issue 20 lakh equity shares to Ranbaxy Laboratories on a preferential basis for Rs 20 crore.
The board of directors has approved the issue of 20 lakh equity shares of Rs 10 at a price of Rs 100 on a preferential basis to Ranbaxy, subject to shareholders' approval, the company informed the Bombay Stock Exchange.
The board also approved the allotment of shares over 1.11 crore equity shares to the erstwhile shareholders of Credence Pharmaceuticals (50.07 lakh shares) and Hemarus Healthcare (61. 20 lakh equity shares) pursuant to the Scheme of amalgamation entered between Credence and Hemarus Healthcare with the company, it said.
The scheme had been approved by the High Court of Andhra Pradesh at Hyderabad in its order dated May 02, 2006, it added.
The Extra Ordinary General Meeting will be held on August 10 to seek the shareholder's approval for the above proposal.
Zenotech's shares closed at Rs 72, up 1.69 per cent at the BSE.