In a Board Meeting held at Hyderabad, Vanta Bioscience Limited
approved the issue of 13.74 lakh equity shares of Rs10 each at a premium of Rs75 each on preferential basis to a select group of investors. The preferential issue represents 24% of the total paid-up capital of the company.
The aggregate amount raised through the preferential route will be used for financing its wholly owned subsidiary Vanta Clinical Research Limited's entry into the clinical research business.
“We are confident that this investment will help build comprehensive solutions for our clients and generate a top-line of ~Rs250cr from the clinical research business in five years,” S. Venkat Rao, CEO, Vanta Bioscience Limited said.
Considered as a major milestone, the preferential issue is subject to approval by shareholders at their extraordinary general meeting scheduled to be held on September 29, 2018.
After its foray into clinical research, Vanta Bioscience will be among the select few companies in India offering comprehensive solutions in this field.
Vanta Bioscience Ltd stock ended up 10% at Rs110 from its previous closing of Rs100 on the BSE.
The scrip opened at Rs95 and has touched a high and low of Rs110 and Rs94.95 respectively.