Shares of Panacea Biotec
gained 14% on Tuesday after India Resurgence Fund (IndiaRF), promoted by Piramal Enterprises and Bain Capital Credit, along with its affiliates announced an investment of up to Rs992cr or $144mn in the company.
"The investment proceeds will be used for a onetime settlement with existing lenders, general working capital and growth requirements of the company," the company said in a press note post markets hours to the exchanges on Monday.
This investment is structured by way of Non-Convertible Debentures (NCDs) of up to Rs864cr and subscription amount of Rs32cr towards share warrants to be allotted on a preferential basis. The subscription amount represents 25% of the total amount of Rs128cr proposed to be raised upon issuance of equity shares against warrants, the company added.
"Subject to the exercise of warrants, IndiaRF (along with its affiliates) will collectively end up owning 10.4% stake in the company on a fully diluted basis," the company said.
Panacea Biotec Ltd's share price is currently at Rs206.80, up by Rs25.65 or 14.16%, from its previous close of Rs181.15 on the BSE.
The scrip opened at Rs202.15 and has touched a high and low of Rs212.85 and Rs202.15, respectively. So far, 4,52,681 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs1,109.56cr.