Piramal pharma, the company that offers comprehensive pharmaceutical services to customers, covering various stages of the pharmaceutical product lifecycle, has received SEBI’s go-ahead to raise up to ₹1,050 crore through rights issue of shares. According to CNBC, the stock settled 1.09% lower at ₹100.30 apiece on the BSE in trade Tuesday. Piramal pharma shares halved over the last 12 months.
According to the draft papers, Piramal Pharma intends to raise funds by issuing fully paid-up equity shares of the company through a rights issue. This rights issue will be exclusively offered to the existing eligible shareholders of Piramal Pharma for an amount aggregating up to ₹1,050 crore.
The proceeds from the issue will be utilized for payment of debt and general corporate purposes.
In a statement quoted by CNBC, Sonam Chandwani, managing partner, KS Legal & Associates says, “Upon examining the draft papers, it is clear that Piramal Pharma has a strategic plan for utilizing the funds raised through this rights issue. By offering fully paid-up equity shares, the company ensures its existing eligible shareholders’ participation, reinforcing its commitment to stakeholder value. The planned utilization of the proceeds to pay off debt and for general corporate purposes signals a prudent approach towards financial management.”
Piramal Enterprises is majority owned by public shareholders at 56 percent, while promoters own the rest of 43 percent of the company. Among the public shareholders, mutual funds have about 4.25 percent stake, and foreign investors own 28.4 percent in the company, as of March quarter.
