Piramal Pharma's Rs 1,050 Crore Rights Issue Opens on August 8

28 Jul 2023 , 01:32 PM

The board of directors of Piramal Pharma has given its approval for a rights issue worth Rs 1,050 crore at a price of Rs 81 per share. The rights issue, which offers fully paid-up equity shares with a face value of Rs 10 each, will open for subscription on August 8 and close on August 16.

The issue size has been fixed at 129,629,630 equity shares, and the company filed the necessary regulatory filing on July 27. The record date to determine eligible shareholders for the offer-for-sale (OFS) is set for August 2.

Piramal Pharma has established the rights entitlement ratio at 5:46, implying that eligible shareholders will receive five rights equity shares for every 46 shares they currently hold.

Upon full subscription, the total number of outstanding equity shares of the company will rise from 1,193,18,500 to 1,32,29,48,130 fully-paid equity shares.

The board of directors initially approved the rights issue in February, and the company submitted the draft paper to the Securities and Exchange Board of India (SEBI) in March.

On July 12, Piramal Pharma received an observation letter from SEBI, signifying the market regulator’s approval for public offerings, including initial public offerings (IPOs) and rights issues.

The proceeds generated from the rights issue will be utilized for debt repayment and general corporate purposes, as stated in the draft papers.

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