Ranbaxy Chairman To Sell Stake

Ranbaxy of India's chairman, Parvinder Singh, has sought permission fromthe Indian government to privately place a maximum of 3.5 million shares with an overseas special purpose vehicle to raise around 2 billion rupees ($55.9 million) to retire some old and expensive debts, according to local drug industry sources.

These sources said Mr Singh and his investment companies, through which he holds the stake in Ranbaxy, had borrowed funds to convert warrants issued in June 1994. The warrants were converted in 1996 and Mr Singh is offering the stock to pay off debt. It has not been decided yet which kind of shares will be used.