Morepen Laboratories share price rises 8% on investment plan approval
Switzerland-based Corinth Group will invest $32.5 million in Morepen Laboratories.
April 28, 2021 / 03:07 PM IST
Morepen Laboratories share price added more than 8 percent intraday on April 28 after the pharma company's board approved an investment proposed by Switzerland-based Corinth Group.
"The Board of Directors of Morepen Laboratories approved the investment proposed by Corinth Group, a global private investment Group to the extent of USD 32.50 million in the parent company, Morepen Laboratories," the company said in the release.
The investment is part of a $100 million investment in the promoter group, subject to the approval of the shareholders and other regulatory bodies, it added. The remaining $ 67.50 million would be in the promoter group companies.
Following shareholder and regulatory approval, Corinth would be allotted 58.50 million new equity shares on preferential basis. This shareholding would equate to 9.41 percent equity stake in the company on a fully expanded capital base.
The board of directors has also approved allotment of 50 million fresh equity shares to the promoter group, at a price determined by the Securities and Exchange Board of India (SEBI) pricing formula for preferential issuances, in lieu of the 98.50 million unsubscribed warrants issued in the last financial year.
While the new allotment would be at Rs 38 per share, which will be 52 percent higher than the earlier price of Rs 25 per for each warrant.
At 1442 hours, Morepen Laboratories was quoting at Rs 53.65, up Rs 3.20, or 6.34 percent on the BSE.
The share touched a 52-week high of Rs 55.40 on April 23, 2021 and a 52-week low of Rs 15.50 on May 22, 2020. It is trading 3.16 percent below its 52-week high and 246.13 percent above its 52-week low.