Local drug maker Alembic Pharmaceutical has received a go ahead from the fund raising committee to launch qualified institutional placement (QIP) at Rs 980.75 apiece. The issue price is at 0.44% discount to Monday’s close.
It is not allowed to offer a discount of not more than 5% on the floor price, as per SEBI regulations. The indicative price for the same is Rs 932 per share which is a 5.4% discount to Monday’s close.
The drug makers board will meet on August 6 to consider the issue price. The issue size is tentatively Rs 650 crore with a green shoe option of an additional Rs 100 crore.
Retail investors may take this opportunity and subscribe for the issue considering the price and growth prospect of the drug maker.
Monarch Networth Capital is the lead manager to the issue.
Meanwhile, Alembic Pharma posted robust results for the June 20 quarter. Profit more-than-doubled to Rs 301 crore from Rs 124 crore in the June 19 quarter on account of strong revenue growth in the US market. Sales grew 41% to Rs 1341 crore from Rs 949 crore.
The drug maker has three research and development (R&D) facilities — two in India’s Vadodara and Hyderabad, and one in the US.
The company has six formulation and three active pharmaceutical ingredient (API) manufacturing facilities.
Five formulation production units in Gujarat are located near Vadodara, three at Panelav and two at Karakhadi. This apart, one facility is located in Sikkim.
The company currently manufactures general oral solids in Panelav and is in the process of putting up oncology oral solids and oncology injectable facilities at the same location.
Besides, two API manufacturing plants located at Panelav and one at Karakhadi.
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