The Board of Directors of Shilpa Medicare Limited (SML) at its meeting held today approved the preferential allotment of 52.75 lacs equity shares aggregating to Rs. 297.51 crores to various marquee investors at a price of Rs. 564 per share.
The marquee investors who participated in the fund raise include Malabar India Fund Limited, Malabar Select Fund, Malabar Midcap Fund, Think India Opportunities Master Fund LP, Blue Diamond Properties Private Limited, Ohm Core Investment Corp, Hypnos Fund Limited and Mr. Madhusudan Kela. The completion of the transaction is subject to necessary shareholder & other regulatory approvals.
The fund raising will enable the company to leverage growth opportunities in identified niche areas including Biosimilars and New Biological Entity space. The levered position created by continuous growth investments made by the Company in the recent past also gets addressed through this equity infusion.
Speaking on the occasion, Mr. Vishnukant Bhutada, Managing Director of the Company, shared, "We are extremely happy to welcome a new set of focused investors into the Company. I also take this opportunity to express gratitude to existing investors for the confidence and strong support that they have shown in us. This development will go a long way in strengthening SML's balance sheet and providing impetus to future growth."
DAM Capital Advisors Limited (Formerly IDFC Securities Limited) acted as the exclusive Financial Advisor to the Company. DAM Capital Advisors is an integrated full-service Investment Bank including an Institutional Equities platform and Mergers and Acquisitions Advisory. The company is owned and led by veteran deal maker, Mr. Dharmesh Mehta, who has more than 30 years of experience in the capital markets.
Shares of Shilpa Medicare Limited was last trading in BSE at Rs. 639.10 as compared to the previous close of Rs. 646.90. The total number of shares traded during the day was 43946 in over 2383 trades.
The stock hit an intraday high of Rs. 657.95 and intraday low of 624.65. The net turnover during the day was Rs. 28062089.00.