Matrix Laboratories is all set to garner Rs 607.50 crore through its preferential offer and secondary sale of company¹s shares to strategic investors. At its board meeting today, the company announced that it has successfully roped in Singaporebased Temasek Holdings as a co-investor. Matrix had earlier announced the name of NewbridgeCapital as one of the strategic investor at its previous board meeting held on Monday.

Putting speculation to rest, Mr C Rama Krishna, executive vice-president (corporate finance) said,³Both Newbridge Capital and Temsek Holdings would pick up the chunk of shares on an equal basis.²

It has been decided to allot 22.50 lakh equity shares on a preferential basis to the two strategic investors. ³This will be followed by issue of 18 lakh equity shares from the existing shareholders to the two investors at Rs 1500 per share through secondary sale,² Mr Rama Krishna said.

The preferential offer and secondary sale of shares would fetch the company Rs 607.50 crore against a total issue of 40.40 lakh shares at Rs 1500 per share. Since shares would be equally allotted, Newbridge Capital and Temasek Holdings would each get about 11.25 lakh shares on preferential basis and 9 lakh shares through secondary sale of shares.

The board meeting has also taken consideration of issue of ³no objection² to strategic investors to enable them to approach foreign investment promotion board (FIPB) to obtain their approval for purchase of 18 lakh shares from the existing shareholders through secondary sale.

³In the post-allotment of shares to strategic investors, the promoters stake would get reduced by14%, from the present 51%, the stake would come down to 37 per cent,² Mr Rama Krishna said.The current equity capital of Matrix is at Rs 12.3 crore.

Matrix plans to utilise the funds so raised for retiring its long term debts to the tune of Rs 75 crore.

The balance would be utilised for setting up R&D centres and for funding anti-HIV programmes.