Glenmark raises Rs413 cr through QIP

Glenmark raises Rs413 cr through QIP

Mumbai: Drug firm Glenmark Pharmaceuticals on Tuesday said it has raised Rs413.56 crore through the issue of over 1.87 crore shares to institutional buyers on private placement basis.

The qualified institutional placements (QIP) issue, which opened on 10 September, closed on Monday, the company said in a filing to the Bombay Stock Exchange, adding that it has priced the equity shares at Rs221 a piece.

The company proposes to issue 18,712,935 equity shares to raise aggregate proceeds of Rs413.55 crore and the net proceeds, after deduction of issue expenses stood at Rs403.81 crore, the filing added.

The outstanding paid up capital of Glenmark pursuant to the issue would be Rs26.96 crore.

The proceeds from the issue will be used for covering the company’s debt. At present, the debt-equity ratio stands at 1.3:1, with a total liability of around Rs1,950 crore.

Shares of the company rose to an intra-day high of Rs221.85, a jump of over 3% from its previous closing price. The stock was later quoted at Rs219.30, up 1.86% on the BSE.