Moneycontrol Bureau
Shares of Sun Pharma Advanced Research (SPARC) rose 6 percent intraday on Tuesday as it has filed draft papers with Securities and Exchange Board of India (Sebi) to raise up to Rs 250 crore through a rights issue. As per draft papers filed with Seb, the company will issue equity shares "aggregating up to Rs 25,000 lakhs to our existing equity shareholders on a rights basis."
In a rights issue, shares are issued to existing investors as per their holding at pre-determined price and ratio. The proceed of the issue will be utilised for meeting costs related to pharmaceutical research and development, clinical trials and for other general corporate purposes.
Ernst & Young Merchant Banking Services Private, Inga Capital Private are the lead managers to the issue.
Earlier in May, the company's board had approved the proposal to raise up to Rs 250 crore through a rights issue. SPARC was demerged from Sun Pharma as a pharma research and drug discovery company in 2007.
At 11:55 hrs Sun Pharma Advanced Research Company was at Rs 395.45, up Rs 13.40, or 3.51 percent on the BSE.(With inputs from PTI)
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