Wockhardt Seeks To Raise Rs 1,000 Crore Via Share Sale To Institutions

Wockhardt's equity dilution is pegged at 5.57% of post-issue paid up share capital, according to the term sheet.

Wockhardt said it has successfully managed the entire development process in-house. (Photo source: Company website)

Wockhardt Ltd. seeks to raise as much as Rs 1,000 crore via sale of shares to qualified institutional investors, leading to a 5.57% stake dilution in the pharma major.

The pharmaceutical and biotechnology company has set a base issue size of Rs 8,000 crore and a green show option to raise another Rs 2,000 crore, according to the term sheet viewed by NDTV Profit.

Shares are likely to be issued at Rs 1,105 per share to qualified institutional buyers, a 4.9% discount to the floor price of Rs 1,162.25 apiece, the term sheet showed. DAM Capital is the banker for the deal.

The issue opened after market hours of Nov. 6 and is expected to be closed on Nov. 7 with an option to extend further, according to the team sheet. The equity dilution is pegged at 5.57% of post-issue paid up share capital.

Also Read: Trade Setup For Nov. 7: Nifty 50 Poised For Breakout, Target Set At 25,130

In March this year, the pharma major raised Rs 570 crore via a qualified institutional placement.

In August 2023, shareholders of the company approved a proposal to raise up to Rs 1,600 crore by way of one or more public or private offerings, including through a QIP, to eligible investors.

The Mumbai-based company is set to launch its novel antibiotic drug WCK 5222, or Zaynich, at discounts of 75-80% in India, the company’s Chairman and Founder, Habil Khorakiwala, said earlier. The drug is currently undergoing Phase 3 global trials.

Talking to NDTV Profit, Khorakiwala said the existing drugs in the category are priced at about $8,000 to $10,000 per treatment in the US. However, the India launch of the drug will not be made at such high prices.

Also Read: Stock Market Live: Nifty, Sensex Trade Over 1% Lower As ICICI Bank & RIL Share Prices Drag

Watch LIVE TV , Get Stock Market Updates, Top Business , IPO and Latest News on NDTV Profit.
WRITTEN BY
Sai Aravindh
Sai Aravindh is a desk writer at NDTV Profit, where he covers business and ... more
GET REGULAR UPDATES