Shilpa Medicare raises over Rs297cr from marquee investors; stock drops over 2%

The fund raising will enable the company to leverage growth opportunities in identified niche areas including Biosimilars and New Biological Entity space.

Oct 18, 2021 02:10 IST India Infoline News Service

Shilpa Medicare
Shilpa Medicare Limited (SML) board of directors has approved the preferential allotment of 52.75 lacs equity shares aggregating to Rs297.51cr to various marquee investors at a price of Rs564 per share.

The marquee investors who participated in the fund raise include Malabar India Fund Limited, Malabar Select Fund, Malabar Midcap Fund, Think India Opportunities Master Fund LP, Blue Daimond Properties Private Limited, Ohm Core Investment Corp, Hypnos Fund Limited and Mr. Madhusudan Kela. The completion of the transaction is subject to necessary shareholder & other regulatory approvals.

The stock is currently trading at Rs622.60, down by Rs16.5 or 2.58% from its previous closing of Rs639.10 on the BSE. The scrip opened at Rs650 and has touched a high and low of Rs650 and Rs615.10 respectively.

The fund raising will enable the company to leverage growth opportunities in identified niche areas including Biosimilars and New Biological Entity space.

The levered position created by continuous growth investments made by the Company in the recent past also gets addressed through this equity infusion, the company said in the filing.

Speaking on the occasion, Mr. Vishnukant Bhutada, Managing Director of the Company, shared, “We are extremely happy to welcome a new set of focused investors into the Company. I also take this opportunity to express gratitude to existing investors for the confidence and strong support that they have shown in us. This development will go a long way in strengthening SML’s balance sheet and providing impetus to future growth.”

DAM Capital Advisors Limited (Formerly IDFC Securities Limited) acted as the exclusive Financial Advisor to the Company. DAM Capital Advisors is an integrated full-service Investment Bank including an Institutional Equities platform and Mergers and Acquisitions Advisory.

The company is owned and led by veteran deal maker, Mr. Dharmesh Mehta, who has more than 30 years of experience in the capital markets.

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