Mumbai: Shares of Chandigarh-based drug maker Nectar Life Sciences Ltd rose 5.82% on Wednesday after the company announced its decision to issue 26 million shares, which will constitutue a stake of about 17.2% in the firm, to Mauritian investment firm NSR Direct PE Mauritius Llc for an undisclosed valuation. Nectar’s share, which have appreciated over 59% in the last three months, closed at Rs40.90 on the Bombay Stock Exchange on Wednesday.
A Nectar Life executive said that the money raised through the preferential issue will be utilized for the company’s proposed expansion and business diversification project. Under this, Nectar will set up two new manufacturing plants at Lalru in Punjab as part of its plans to diversify into new areas of therapy such as cancer, diabetes, cardiovascular and HIV/AIDS in the next 12-18 months.
The total cost of the expansion project is about Rs 600 crore.
Nectar Life, which was listed in 2005, is currently focused on manufacturing active pharmaceutical ingredients for new-generation antibiotics such as cephalosporins.
Nectar had on Tuesday informed the stock exchanges that its board has also approved a proposal to raise upto Rs250 crore through equity as well as debt.