Jubilant Life Sciences jumps after subsidiary raises funds

Jubilant Life Sciences rose 4.02% to Rs 613.55 at 15:25 IST on BSE after the company said its wholly-owned subsidiary successfully raised $300 million through a sale of unsecured bonds.

The announcement was made after market hours yesterday, 29 September 2016.

Meanwhile, the BSE Sensex was up 50.52 points, or 0.18%, to 27,878.05.

On BSE, so far 1.35 lakh shares were traded in the counter, compared with average daily volume of 2.51 lakh shares in the past one quarter. The stock hit a high of Rs 619.70 and a low of Rs 589.10 so far during the day. The stock hit a record high of Rs 655 on 27 September 2016. The stock hit a 52-week low of Rs 272.50 on 20 January 2016. The stock had outperformed the market over the past 30 days till 29 September 2016, rising 9.81% compared with 2.20% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 85.46% as against Sensex's 2.51% rise.

The mid-cap company has equity capital of Rs 15.93 crore. Face value per share is Re 1.

Jubilant Life Sciences said that its wholly-owned subsidiary, Jubilant Pharma (JPL), has successfully completed the pricing of its rated unsecured high yield bonds (the notes) at a yield of 4.875% per annum, issued at par for $300 million and maturing in September 2021. The issuer (JPL) has been rated BB- by Standard & Poor's Ratings Services (S&P) and Fitch Inc. (Fitch) and the issue (the notes) has been rated BB- by S&P and BB by Fitch.

The net proceeds of the notes shall be used to prepay the existing debts of JPL and its subsidiaries; for upstreaming upto $50 million to Jubilant Life Sciences for prepayment of its existing debts; and for general corporate purposes, the company said in a statement.

Jubilant Life Sciences' consolidated net profit rose 22.49% to Rs 161.60 crore on 1.72% decline in net sales to Rs 1400.97 crore in Q1 June 2016 over Q1 June 2015.

Jubilant Life Sciences is an integrated global pharmaceutical and life sciences company engaged in manufacture and supply of active pharmaceutical ingredients (APIs), solid dosage formulations, radiopharmaceuticals, allergy therapy products and life science ingredients. It also provides services in contract manufacturing of sterile injectables and drug discovery solutions. The company's strength lies in its unique offerings of pharmaceuticals and life sciences products and services across the value chain.

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