RPG Life to undergo restructuring

RPG Life Sciences said on Wednesday it will undergo a restructuring process, wherein its pharmaceutical business and investments will be transfered to two of its group companies.

The board of directors of the company at its meeting yesterday approved the scheme of arrangement between RPG Pharmaceuticals, Instant Holdings, Instant Trading and Investment Company and itself to this effect.

As per the scheme of arrangement the company would sale its pharmaceuticals business to RPG Pharmaceuticals for Rs 46 crore (Rs 460 million) and its investment business to Instant Holdings for Rs 53 crore (Rs 530 million),

RPG life said in a communique to the Bombay Stock Exchange.

Besides Instant Trading and Investment Company would be merged with Instant Holdings, it added.

Accordingly, Instant Holdings would issue equity shares of Rs 9.95 crore (Rs 99.5 million) shares to RPG Life and RPG Pharmaceuticals would offer equity shares of over Rs 11.49 crore (Rs 114.9 million) to RPG Life in 1:1 ratio.

The scheme would be subject to shareholders and other necessary approvals. Shares of the company were trading at Rs 103.85, up 0.53 per cent on BSE during morning trade.