Preferential share plan props up Kopran Pharma

DALAL STREET SPIKES

Kopran Pharma jumped 4.9 per cent to hit the 5 per cent circuit limit on the BSE at Rs 49.25 after the company's board proposed issue of fresh preferential equity shares and warrants to Cyprus based Clearwater Capital Partners.

Around 67,500 shares were traded in Monday's session. Kopran's share-price has been falling from its peak in June last year when it was valued at nearly twice its current price, Rs 93.50.

The funds raised through the issue would be used for funding of future operations of the company including capital expenditure, working capital, debt restructuring and other growth plans.

The company will also restructure its subsidiary Kopran Research Laboratories which is engaged in research on two molecules "� KNC 6 and KNC 1206. In January 2006, Kopran licensed out its products to Ahmedabad-based Suvik Pharma.

It also has a distribution pact with Mumbai-based Manish Pharma for its OTC products. Kopran reported a net loss of Rs 3.40 crore for the Q3 December 2005. Net sales, however, rose 5.20 per cent to Rs 25.91 crore.