Wockhardt has launched a Qualified Institutional Placement (QIP) to raise funds up to Rs 1,000 crore ($119 million), with an additional green shoe option of Rs 200 crore, the company informed stock exchanges on November 6.
The issue price is set at Rs 1,105 per share, which represents a 4.93% discount to the prescribed floor price of Rs 1,162.25 per share, and a 12.98% discount from Wockhardt’s closing price on November 6 on NSE.
This QIP is expected to result in a dilution of approximately 5.57% of Wockhardt’s post-issue paid-up equity capital. Through this QIP, Wockhardt said it aims to strengthen its capital structure, possibly funding growth initiatives or reducing existing liabilities.
Wockhardt has been actively exploring fundraising avenues to strengthen its balance sheet and support ongoing projects. In 2020, the company raised capital through asset monetization and sale of its branded generics business in select emerging markets to Dr Reddy’s for approximately Rs 1,850 crore, and used the proceeds to pare down debt and enhance liquidity.
Wockhardt said in September that one of its investigational drug - Zaynich - has successfully treated critically ill patients of drug-resistant Meningitis. There has also been bullishness over the company's two promising antibiotics, heading closer to a probable launch in India.
The company had launched a fundraise in March this year, where it saw top investors Madhusudan Kela and Prashant Jain contribute to the Rs 480-crore Qualified Institutional Placement (QIP).
Shares of Wockhardt are higher by 170% so far this year.
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