Piramal Pharma Board Approves Rs 1,050 Rights Issue At Rs 81 Per Share

Pirmal Pharma’s board of directors has given its nod for its Rs 1,050 crore rights issue at a price of Rs 81 per share. The offer-for-sale (OFS) will open on August 8 August and close on 16 August.

The board approved the issue size of 129,629,630 fully paid-up equity shares of face value of Rs 10 each for an amount of Rs 1,050 crore, the company said in a regulatory filing on 27 July.

The record date for determining the eligible shareholders for the OFS is 2 August.

The company has fixed the rights entitlement ratio at 5:46, which means five rights equity shares for every 46 shares held by an eligible shareholder.

If fully subscribed, the company’s outstanding equity shares will increase from 1,1933,18,500 to 1,32,29,48,130 fully-paid equity shares after the issue.

Piramal Pharma’s board of directors approved the rights issue in February. The company filed the draft paper with SEBI in March and received an overservation letter on 12 July.

The market regulator’s observation signifies its approval for public offerings, including initial public offerings (IPOs) and rights issues.

The proceeds will be used for the payment of debt and general corporate purposes, as per the draft papers.

At 11:17 AM, Piramal Pharma shares were trading 1.79 per cent down at Rs 106.52 on the BSE. The stock has lost over 13 per cent in 2023 so far. In the last year, the stock has plunged nearly 45 per cent.