European firm seen circling Vimta Labs

Is Vimta Labs on the verge of being taken over?

Sources believe it is. In fact, some see a hostile bid in the works.

The suitor is said to have already acquired 10-11% stake through a leading investment company, which is known for its warehousing skills.

“We hear that the acquisition of equity is happening at various stages through the investment company. However, an open offer would be triggered once the shares purchased so far are consolidated and the total holding touches 15%,” a source said.

Company officials are loath to admit this, but sources say a multinational testing lab in Europe has set eyes on the Hyderabad firm.

Established in 1984, Vimta Labs is a leading contract research and testing organisation with a track record of serving several market leaders across the globe. It is led by S P Vasireddi, chairman and managing director, who was early to sense an opportunity in contract research and testing.

Vimta works with several pharma and biotechnology majors on drug discovery through pre-clinical development, clinical development and analytical testing stages.

The company also supports regulatory authorities in mandatory certification and nutritional labelling of food and agro products exported from India for food safety evaluations, and trace analysis and shelf-life studies. From fruits and vegetables to meat, pulses and spices, besides specialisation in microbiological evolutions, it offers pre-shipment services.

The company has a low equity base of about Rs4.42 crore. Promoters hold about 36.83% of the equity, while about 63.17% is with the public, including non-institutional holding of about 57.68%. Corporate bodies hold another 16.85%.