Goldman buys 7% in Fulford India for Rs 13 cr

MUMBAI: Goldman Sachs’ private equity fund has bought 7% in Fulford India, an affiliate of the US-based pharma firm, Schering-Plough, for Rs 13 crore. The fund bought 2.25 lakh shares of Fulford through seven block deals reported at the BSE in the second half of July.

The deals were transacted at different prices ranging from Rs 527.5 to Rs 580 per share. With this acquisition, Goldman Sachs’ stake in Fulford India has risen significantly to 8% from 1% as of June 30, ’06.

Of the 7% stake, 4.2% was acquired from Birla Sun Life sponsored schemes like Birla Sun Life Buy India Fund and Birla MNC Fund. The list of sellers included Prudential ICICI mutual fund and Passionate Investment. Fulford India shares shot up 16% to end at Rs 616 on Wednesday. If the market talk is to be believed, the company’s foreign parents are expected to increase their holdings through creeping acquisition route.

As per the shareholding pattern filed with the BSE as of June 30, ’06, the company’s foreign promoters held 40% of the equity of 32 lakh shares. Mutual funds and FIIs held 13.8% and 2%, respectively. Corporates had a 6% stake while the public held little over 35% stake.

Fulford market drugs in therapeutic areas like oncology, virology, cardiovascular, dermatology, anti infective and anti histamines. Most of these products are original research products of Schering-Plough. Pharma analysts feel that Fulford plans to increase its product profile into new therapeutics areas and may market more Schering-Plough products in the country.

The company put up a disappointing performance for the second quarter ended June 30, ’06. Fulford India saw net profit fall 22% to Rs 5.6 crore while net sales fell 9% to Rs 46 crore. The company, however, saw net profit rise 28% to Rs 15 crore for the full year ended December ‘05.