Shares of Suven Life Sciences fell 93 percent on January 21 as the stock traded ex-demerger of its CRAMs business with effect from today.
The scrip closed at Rs 21.30 on the BSE, down Rs 281.10, or 92.96 percent from previous closing price.
The record date for demerger is January 22, which means the person has to have Suven Life's shares in his/her account by end of this day and then he/she will be eligible for shares of CRAMs business.
On January 6, the National Company Law Tribunal, Hyderabad has passed order allowing the company Petition filed for sanction of the Composite Scheme of Arrangement amongst Suven Life Sciences (SLSL) and Suven Pharmaceuticals and their respective shareholders and creditors," company said in its BSE filing.
After the NCLT approval for the scheme of demerger on January 6, the scheme became operational w.e.f. January 9. The board of directors had approved the scheme in February 2019.
Suven Life had acquired all the shares of Suven Pharmaceuticals (SPL) from its existing shareholders. Pursuant to which, Suven Pharmaceuticals has become a wholly owned subsidiary of the company.
The contract research and manufacturing services undertaking (including its respective assets and liabilities) of the company will be transferred to Suven Pharmaceuticals by way of demerger.
In consideration for the demerger, SPL will issue one fully paid up equity share of Rs 1 each for every one fully paid up equity share of Rs 1 held by each shareholder of SLSL as on the Record Date, on a
proportionate basis.
"On and from the effective date, and with effect from the demerger appointed date, the existing issued, subscribed and paid-up equity share capital of SPL held by SLSL prior to the appointed date, shall be reduced/ cancelled," company had said in February 2019.
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