General Atlantic-backed Jubilant Life Sciences Limited, earlier known as Jubilant Organosys Ltd.), has demerged its agri & performance polymers business into an independent company Jubilant Industries Ltd.
The integrated pharma and life sciences player said that demerger was effective Nov 15, 2010 and Jubilant Industries will be a part of Jubilant Bhartia Group. Jubilant Industries is expected to list on both BSE and NSE.
The share price of the firm reacted postively to the news, with stock closing at Rs 287.15, up by 4.86% today.
The measure comes as Jubilant plans to create a focused life sciences firm. Jubilant Life Sciences is one of the largest custom research and manufacturing services and integrated drug discovery player in India. Post demerger, the conversion price would be reset for the outstanding FCCBs of $142 million based on the valuations done by Kotak Mahindra Capital Company Ltd and SBI Capital Markets Ltd.
Jubilant Industries Ltd has a portfolio of products in crop nutrition, growth and protection agri products and performance polymers products comprising consumer products like adhesives, wood finishes, etc. The company had revenues of Rs 307 crore and a net profit of Rs 21 crore for the half year ending September 2010.