On BSE, 3.72 lakh shares changed hands in the counter. The stock had an average daily volume of 3.74 lakh shares on BSE in past one quarter.

The stock hit a high of Rs 20.65 and low of Rs 19 so far during the day. The stock hit a 52-week high of Rs 25.80 on 9 February 2007 and a 52-week low of Rs 6.55 on 25 September 2006.

Morepen Laboratories (MLL) had outperformed the market over the last one month to 20 September 2007, gaining 23.25% compared to the Sensex's return of 14.73%. It had underperformed the market rising 9.32% compared to Sensex's rise of 13% in the past one quarter.

G L India, Mauritius, a part of Avenue Capital Group, will subscribe to 3.853 crore equity shares of Rs 2 each of Morepen at a premium of Rs 18, resulting in Avenue acquiring 14.99% stake in Morepen. In addition to this, Avenue Capital will also subscribe to naked warrants to the extent of 5% of the enhanced capital base of Morepen, resulting into an infusion of Rs 27.04 crore into the company.

With regards to this, Avenue Capital will pay 10% money on subscription and the balance 90% is to be paid within 18 months of signing the term sheet.

The company will also issue warrants to promoters, which are to be converted into 10 crore equity shares amounting to Rs 60 crore. Promoters will hold 46% stake if they decided to covert the entire warrants into equity.

After the equity placement, the total equity of Morepen will go up to Rs 74.12 crore. This will include 2.03% equity issued to banks.

The entire amount of Rs 140 crore that will be raised through equity and warrants issue will be utilized for repayment to banks under corporate debt restructuring (CDR). As a part of settlement of debt, Morepen Lab has already issued preferential capital of Rs 103 crore to banks, which will have an option to be converted into equity after a period of seven years. With this settlement, the company will not have any pending liabilities with banks. It will have a serviceable debt of Rs 72.39 crore, bearing an average interest at the rate of 8.25% per annum.

MLL reported net loss of Rs 13.72 crore in Q1 June 2007 as compared to a net loss of Rs 8.68 crore in Q1 June 2006. Sales declined 8.1% to Rs 28.86 crore in Q1 June 2007 over Q1 June 2006.

MLL's current equity share capital is Rs 43.71 crore. Face value per share is Rs 2.

The company manufactures life-saving drugs.