Shasun Pharmaceuticals stopped trading on the exchanges with effect from Wednesday ahead of the company's merger with Strides Arcolab. November 19 is the record date for determining the names of shareholders of Shasun Pharmaceuticals who will be entitled to get shares in Strides Arcolab.
Shareholders of Shasun Pharma will get five shares of Rs 10 face value of Strides Arcolab for every 16 shares of Rs 2 face value held in Shasun Pharmaceuticals. Based on the exchange ratio, Shasun shareholders would own 26 per cent of the combined entity.
The merged entity will be amongst the top 15 listed pharmaceutical companies in India by revenue and have a formulations basket of 160 products. Macquarie in a report said synergies from merger will drive margins for the combined entity in FY17 and beyond. Shasun Pharma had earlier said that the merger will reduce cost by around 20 per cent.
Board of Directors of both the companies had approved the merger in September last year. The fair trade watchdog, Competition Commission of India (CCI) also gave its approval to the proposed merger in the month of March this year.
As of 11.22 a.m., Strides Acrolab shares traded 0.13 per cent higher at Rs 1,381 apiece compared to 0.24 per cent fall in the broader Nifty. Earlier in the day its shares touched 52-week high of Rs 1,402.45.
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