Solara Active Pharma Science gains on board nod to raising up to Rs 450 crore

Solara Active Pharma Science gains on board approval for up to Rs 450 crore-fundraise

Shares of Solara Active Pharma Science wee trading over a percent higher on July 6 morning after the company’s board approved fundraising of up to Rs 450 crore by way of a rights issue.

The company plans to issue equity shares with a face value of Rs 10 each, totalling up to Rs 450 crore. This will be done through a rights issue to eligible shareholders as of the record date, the company said in an exchange filing.

At 9.15 am, the stock was trading 1.4 percent higher at Rs 404.4 on the BSE.

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ICICI Securities expects a compounded annual growth rate of 12.1 percent and 53.8 percent in revenue and EBITDA over FY22-FY25, led by a recovery in base business and new launches. It sees the company generating a free cash flow of around Rs 630 crore over FY23-FY25 but added that even as return ratios will improve, it will still remain below approximately 10 percent.

Consolidated net sales for the quarter ended March came in at Rs 380.62 crore, up 5.5 percent on year, while net profit jumped 100 percent to Rs 3.77 crore.

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