The qualified institutional placement (QIP) offering of pharmaceutical firm Wockhardt Limited has attracted bids worth almost Rs 1,500 crore for the Rs 1,000 crore share sale, a majority of them from mutual funds, people aware of the matter told Moneycontrol.
Mutual funds that have participated in the Wockhardt QIP include Tata MF, HDFC MF, ICICI Pru MF, SBI MF, Bandhan MF, Invesco and Mirae, they added. Several high networth individuals also participated in the share sale, but the QIP subscription was largely dominated by mutual funds.
The Wockhardt QIP was launched on November 6, with the company targeting a base issue size of Rs 800 crore and a green shoe option of Rs 200 crore. The share sale was launched with an indicative price of Rs 1,105 per share, a 12.98 percent discount to the Wockhardt stock’s closing price on November 6, according to deal terms seen by Moneycontrol.
The share sale is expected to result in a dilution of around 5.57 percent of post-issue paid-up equity share capital, at the indicative issue price of Rs 1,105 per share. Investment bank DAM Capital advised Wockhardt on the share sale.
Since the start of 2024, Wockhardt’s stock price has almost tripled to Rs 1,233.85 per share as on November 8.
Also Read: Wockhardt shares skyrocket nearly 40% in five days as two crucial antibiotics inch closer to launch
Emails sent to Wockhardt Limited did not elicit a response till the time of publication.
Use of QIP proceeds
Wockhardt plans to use Rs 500 crore from the QIP proceeds for repayment of debt, while another Rs 250 crore will be used for capital expenditure and for investment in research and development. The rest of the QIP proceeds will be used for general corporate purposes, as per an offer document filed by Wockhardt with the stock exchanges.
The debt repayment will focus largely on repaying loans, in part or full, availed for working capital purposes from lenders such as State Bank of India, IDBI Bank, Bank of Baroda, ICICI Bank, Punjab National Bank and STCI Finance.
For capex, Wockhardt plans to spend around Rs 110 crore towards acquisition and upgradation of equipment, plant and machinery at its Waluj and Shendra plants in Maharashtra.
On the R&D front, Wockhardt is working on a comprehensive pipeline of anti-diabetes biosimilars for Insulin and Insulin Analogs, Wockhardt noted in its offer document.
The products Wockhardt is working on include Aspart R, a rapid-acting insulin analogue used to manage blood sugar levels in individuals with diabetes; Aspart 30/70, a premixed insulin formulation that combines 30 percent rapid-acting insulin Aspart with 70percent intermediate acting insulin; Lispro R, also a rapid-acting insulin analogue and WCK 9406, an innovative “bio-better” that combines fast-acting insulin analogue and long-acting insulin analogue, which is indicated to improve glycemic control in patients with Type-I & Type-II Diabetes Mellitus.
Wockhardt is currently also in the process of commercialising other promising drugs such as its flagship novel mechanism based antibiotic, Zaynich (Cepefime/Zidebactam), designed to target extreme-drug resistant meningitis, which is undergoing a global Phase 3 study.
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