Wockhardt gains after board approves rights issue

Wockhardt rose 1.29% to Rs 442.10 after the company said its board approved raising upto Rs 1000 crore through rights issue of equity shares.

The board of Wockhardt approved rights issue of equity shares to the existing shareholders of the company for an amount not exceeding Rs 1,000 crore.

The objective of the issue is to meet the company's financing needs for repayment of subordinated debt due, financing research and development initiatives, general corporate purposes and/or such other use of process as may be permitted under the applicable laws.

The board also authorised the capital raising committee of the board to decide on the terms and conditions of the rights issue, including the rights entitlement ratio, the issue price, record date, timing of the issue and other related matters.

Wockhardt is a research based global pharmaceutical and biotech company. The company reported a consolidated net profit of Rs 34 crore in Q2 FY22 as against a net profit of Rs 4 crore in Q2 FY21. Sales increased by 21% YoY to Rs 862 crore during the quarter.

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