Ranbaxy to take majority stake in Vorin

India's Ranbaxy Laboratories is set to increase its stake and emerge asthe majority shareholder in Vorin Laboratories, which has a 240-ton plant manufacturing bulk drugs and intermediates in Hyderabad. Ranbaxy's shareholding in Vorin is likely to be hiked up from 36% to 51% through a preferential allotment issue which is expected to be priced at 75-80 rupees ($1.72-$1.83) per share. Ranbaxy is expected to pay 150 million rupees to subscribe to the issue, India's Economic Times said.

Presently, a group of Non-Resident Indians owns 36% of Vorin, while 21% is in public hands. After Ranbaxy raises its stake, the NRI group's holding is likely to fall to around 27%.

Vorin, which supplies bulk ciprofloxacin and various intermediate drugs to Ranbaxy, had net profits of 23.5 million rupees on sales of 883.9 million rupees in the year to March 31, 1999.