Panacea Biotec to demerge realty business into separate listed company; stock up 10%
Post arrangement, Radhika Heights will to issue new shares to all Panacea shareholders in same proportion. Hence, existing shares held by company in Radhika Heights will be cancelled.
Panacea Biotec share price surged 10 percent intraday Thursday as the company is going to demerge its realty business into a separate listed company.
Real estate business comprises of Radhika Heights along with subsidiaries and two properties - DCM Building Property and Jonapur Property. This is first demerged undertaking.
Panacea will also demerge the specified leasing business of Radhika Heights along with its Mohan Cooperative Property from Radhika Heights into Panacea. This is the second demerged undertaking.
Post arrangement, Radhika Heights will to issue new shares to all Panacea shareholders in same proportion. Hence, existing shares held by company in Radhika Heights will be cancelled, the company said.
"Radhika Heights will issue two equity shares to Panacea's shareholders for every one share held by them in company. It will also issue one 0.5% cumulative non-convertible and non-participating redeemable preference shares to preference shareholders of Panacea for every 100 preference shares held by them in company," it detailed.
Panacea said Radhika Heights will be controlled and managed by Ravinder Jain while Panacea Biotec will continue to be managed by remaining three promoters - Soshil Kumar, Rajesh Jain and Sandeep Jain.
After demerger, promoter and promoter group will continue to hold 74.60 percent stake in Panacea and will also hold 74.60 percent stake in Radhika Heights. Earlier Panacea was used to hold 100 percent stake in the real estate business.
Radhika Heights will be listed on BSE and NSE.At 15:13 hours IST, the stock price was quoting at Rs 249.80, up Rs 8.75, or 3.63 percent on the BSE.