Drug firm Panacea Biotec today said its promoters have entered into a family agreement under which they plan to demerge the company’s real estate business into a separate firm to be later listed on bourses.
Under a memorandum of acknowledgement of oral family settlement, the promoters have decided that the company’s real estate arm, Radhika Heights Ltd, would be managed by Ravinder Jain and may become a separate listed entity, Panacea Biotec said in a filing to the BSE.
On the other hand, the pharmaceutical formulation and vaccine business will continue to be managed by promoters Soshil Kumar Jain, Rajesh Jain and Sandeep Jain, it added.
This is being done to increase efficiency in management, control and administration of the company and its subsidiaries and enhance stakeholders’ value, Panacea Biotec said.
“To enable the company to focus on its core business and raise necessary resources for respective businesses independently, the real estate business may be demerged into Radhika Heights Ltd, a separate listed company…,” it added. The promoter group currently holds 74.6 per cent stake in the company and the remaining 25.4 per cent is with the public.
Stock of Panacea Biotec jumped to Rs 172.90 in the afternoon trade on the BSE, sharply up 14.85 per cent from the previous close.