Ahead of its rights issue, Makers Laboratories' counter has become active. On the Mumbai Stock Exchange, the stock spurted by 44.5 per cent in just 12 trading sessions. The stock started rising from a low of Rs 25.95 on September 16 to Rs 37.5 on October 4.

The company board is meeting on October 11 to decide on the rights issue. The rights issue is part of its plan to expand its marketing network. The company plans to expand its distribution network during in the current fiscal with the addition of four to five new depots in various states. The company has a low equity base of Rs 2.17 crore. Of this, almost 40 per cent is held by the public and promoters hold around 60 per cent.

Part of the Ipca group, Makers Laboratories Ltd has recorded an impressive performance for fiscal 1999. The company reported a 65 per cent jump in its net profit to Rs 80.38 lakh for fiscal 1999 compared with Rs 48.84 lakh in 1997-98. Sales rose by 52 per cent to Rs 23.96 crore, from Rs 15.76 crore in the previous year.

The impressive performance is on the back of a rise in the turnover of generic formulations and bulk drugs manufactured at its Palghar and Dombivli factories respectively. The company has consolidated its presence in the market of generic formulations. The significant increase in its bulk drug sales is due to the marketing of additional products in the domestic and international market. The company has already added several new products to its existing range of formulations.

For the fiscal 2000, the company expects a further improvement in the performance of its generic division, Win Laboratories. For the first quarter of the current fiscal, the company recorded an operating profit of Rs 75 lakh on a turnover of Rs 8.12 crore. However, interest cost stood high at Rs 28 lakh. Net profit for the quarter was Rs 34 lakh.

Tasc Pharmaceuticals is planning to issue 18 lakh equity shares of Rs 10 each at a premium of 6, aggregating Rs 2.88 crore, on a preferential basis. Thanks to the proposed preferential allotment, the stock zoomed by 43 per cent in just seven trading sessions. From a low of Rs 13.5 on September 23, the scrip spurted to a high Rs 19.35 which is now more than the preferential allotment price of Rs 16. Of the Rs 8.2 crore paid up capital, promoters are holding almost 17 per cent and the balance of 83 per cent is held by the public. After the preferential allotment, the paid up capital will rise to Rs 10 crore.

Tasc Pharmaceutical has been promoted by Vijay Thakkar, Sanjay Thakkar and Sanjay Sahu. The company manufactures ciprofloxacin, chloramphenicol and chloramphenicol palmoate. The promoters also trade in bulk drugs and formulations through their associate concern, Tasc Chemical India Pvt Ltd. The company recorded a net profit of Rs 72 lakh on sales of Rs 9.49 crore for the first six months of fiscal 1999.

-- Jai Kumar N R