Kopran hopes to be back in black this quarter

Mumbai: After having completed a major round of restructuring, drug-maker Kopran Ltd is set to raise about Rs 57 crore through the issue of fresh equity shares and warrants on preferential basis to Clearwater Capital Partners (Cyprus) Ltd.

Korpan, which has over-the-counter brands such as Smyle, also expects to be back in the black this quarter with growth plans moving along expected lines, Mr Surendra Somani, Kopran's Executive Vice-Chairman told Business Line.

Kopran proposes to issue 47.20 lakh equity shares and 58.42 lakh warrants at Rs 54.70 (including premium of Rs 44.70) each, the company told the BSE , following its board-meeting held recently. The resources would fund Kopran's future operations including capital expenditure and debt-restructuring, besides supporting growth plans in the US and European markets, Mr Somani said. After the equity issue, Clearwater Capital will hold about 14.95 per cent in Kopran Ltd, he added. The promoters at present hold about 30 per cent in the company.

During the process of the business and financial restructuring initiated earlier by the company, Kopran had assigned part of its debt, about Rs 130 crore, to Clearwater Capital Partners India and the interest level had been brought down, Kopran had said last year.

After losses in the two preceeding quarters, Mr Somani said that the company would be back in the black this quarter and end the financial year with cash profits. Ongoing expansion had accounted for the loss in the previous two quarters, he said. The company expects to close the year ending March 2006 with revenues of about Rs 135 crore.

Kopran's board has also approved a proposal to restructure/ amalgamate Kopran's wholly owned subsidiary Kopran Research Laboratories Ltd. This is subject to shareholder and regulatory approval.