FMCG major Emami Ltd has raised its equity stake in the 100-year-old Zandu Pharmaceuticals to 27.51% from its earlier holding of 3.5%.

Emami, on May 29, bought 24% stake from the Vaidyas, who are the descendants of Zandu Pharmaceutical Works’ founder Vaidya Zandu Bhattji.

Before the recent deal, the Kolkata firm hold 14.81% in Zandu, which too had been purchased from the Vaidyas previously.

The Parikhs would carry on holding 20% in Zandu even after the Emami stake-buys.

Public shareholding in Zandu is over 30%. Emami bought the stake in Zandu via group companies including Bhanu Vyapar (P) Ltd, Suraj Viniyog (P) Ltd, Suntrack Commerce and Diwakar Viniyog.

While talking to the news persons, Emami chairman R S Agarwal stated that his company would emerge with an open offer for an added 20% stake in Zandu next week.

“Anand Rathi group is preparing the open offer document for us. Hopefully, by Tuesday, we will come out with an open offer,” Mr. Agarwal said.

Agarwal said that the expected expenditure for a fully subscribed open offer would be Rs 130 crore, which will take the total acquisition cost to Rs 300 crore.

Emami shares gained 10% on Friday (May 30) to mark its closure at Rs 320.10 on the Bombay Stock Exchange (BSE). On the other hand, Zandu stock gained 15.9% to Rs 8,127.20 from the previous close of Rs 7012 following the acquisition buzz.