Zydus Wellness to raise Rs2,575cr through preferential issue to fund Heinz India acquisition

Issue price of preferential allotment is Rs1,382 per share; company also agreed to raise debt of Rs1,500cr within one year

Dec 07, 2018 03:12 IST India Infoline News Service

Zydus wellness (ZWL) has proposed to raise Rs2,575cr through preferential allotment in order to fund the Heinz India acquisition worth Rs4,595cr (Read more here). It also stated that it would raise debt by issuing listed, secured, redeemable, non-convertible debentures on private placement basis for an amount up to Rs1,500cr anytime within one year from the date of passing the special resolution.

Company is issuing 1,86,32,416 number of shares on a preferential basis at an issue price of Rs1,382 per share.

ZWL had signed a definitive agreement to acquire 100% equity share of Heinz India Private Limited (HIPL), jointly with Cadila Healthcare Ltd. (HPIL is the subsidiary of Kraft Heinz) on October 24, 2018. The cost of acquisition is Rs4,595cr (subject to customary working capital and other adjustments - assuming target net working capital of Rs40cr and minimum cash balance of Rs15cr); to be funded through a combination of debt and equity.

Preferential allotment:
Name of investor No. of shares Amount (Rs cr)
True North 72,35,890 1,000
Pioneer Investment Fund 7,23,589 100
Cadila Healthcare 85,02,170 1,175
Zydus Family Trust 21,70,767 300
Total 1,86,32,416 2,575

Shareholding in the company post issue:
Total No. of shares post issue 5,77,04,505
Shareholding post issue (%)
True North 12.5
Pioneer Investment Fund 1.3
Cadila Healthcare 63.5
Zydus Family Trust 4.1
Public (Others) 18.6
Total 100.0
Shareholding of the promoter, Cadila Healthcare post the issue would decline from 72.1% to 63.5% and that of Zydus Family Trust will increase from 0.4% to 4.1%.

Zydus Wellness Ltd is currently trading at Rs1,255 up by Rs16.95 or 1.37% from its previous closing of Rs1,238.05 on the BSE.

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