The acquisition of the stake estimated at a cost of Rs. 37 million was over three days. On Monday it picked up an 18% stake at a cost of Rs. 24 million. Price paid ranged between a high of Rs. 1.50 per share for a block of 3.5 million shares and a low of Rs. 1.20 each for the block of 10.43 million shares. Subsequent stakes however had been at a slightly higher price.
On Monday nearly 25 million shares of PC Pharma traded between a low of Rs. 1.10 and a high of Rs. 1.60 before closing at Rs. 1.40, up by 20 cents. On Tuesday 12 million shares traded and the share price closed at Rs. 1.80. Yesterday around seven million PC Pharma shares traded before closing at the same price though hitting an intra-day high of Rs. 1.90.
On Monday the major seller was British American Technologies, which divested a 16% stake. Rest of the stake had been collected from the market by Adam. PC Pharma’s Chairman S.H.M. Rishan has over a 20% stake under his name whilst PCH Holdings holds a 28% stake. In the first nine months of FY14, PC Pharma made a Rs. 102 million loss and had retained loss of Rs. 71.5 million.
Investment into PC Pharma is the second most recent by Adam after it acquired controlling stake of 40% in Orient Garments Plc and a 10% stake in PC House Holdings Plc. Adam is seeing potential for revival and value in PC Pharma hence the investment.
Adam, which had its debut on the CSE in early June, also has equity investments in Ceylon & Foreign Trades Plc and substantial shares of private limited liability companies, namely Network Communications Ltd., Adam Metals Ltd., Adam Apparels Ltd., Adam Automobiles Ltd. and Adam Air Conditions Ltd.
Adam, which raised Rs. 300 million via its IPO at Rs. 3 per share, yesterday saw its share price peak to Rs. 5 before closing at Rs, 4.90, up by 20 cents.
Adam Investments’ Board of Directors – led by Dr. Ali Asger Shabbir Gulamhusein – believes uniting these entities under the Adam Investments umbrella will strengthen all, allowing each company to thrive in their respective sectors while synergies and streamlined management practices between companies could help create a sustainable environment for growth and excellence.