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PSIDC okays buyback deal with Ind-Swift

Our Bureau

MUMBAI, Jan. 5

IND-SWIFT Ltd has received clearance from the Punjab State Industrial Development Corporation's (PSIDC) Project Approval Board for the purchase of the latter's 23.14 per cent equity stake in group company, Ind-Swift Laboratories Ltd. The purchase will help the group synergise and focus on the future.

The buyback is as per the financial collaboration agreement involving around Rs 8 crore. Ind-Swift and its associates will purchase 25.56 lakh shares held by PSIDC at an average price of Rs 31-32.

According to Mr V.K. Mehta, Joint Managing Director, Ind-Swift: "Our association with PSIDC had been very successful. The buyback will be completed under the terms of the collaboration agreement."

On paying Rs 32 per share when the market value is Rs 20, Mr Mehta said: "The price has been arrived at by a pre-determined formula of market price or average price per share calculated at the rate of interest on investment made by PSIDC, whichever is higher. We are confident of the future potential of the company." The Ind-Swift board is meeting on Monday in Chandigarh to consider and okay the swap ratios for the proposed merger .

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