Panacea Biotec shares surge nearly 12% on Rs 992 cr investment by IndiaRF

Shares of Panacea Biotec zoomed nearly 12 per cent Tuesday after India Resurgence Fund (IndiaRF), promoted by Piramal Enterprises and Bain Capital Credit, along with its associates announced an investment of up to Rs 992 crore in the drug firm.

The scrip jumped 10.65 per cent to close at Rs 200.45 on the BSE. Intra-day, it rose sharply by 17.49 per cent to Rs 212.85.

At the NSE, the company's shares zoomed 11.54 per cent to close at Rs 199.95.

In terms of volume, 2.43 lakh shares were traded on the BSE during the day, while over 15 lakh shares were traded on the NSE.

"The investment proceeds will be used for a one-time settlement with existing lenders, general working capital and growth requirements of the company," IndiaRF and Panacea Biotec said in a joint statement on Monday.

Commenting on the development, IndiaRF MD Shantanu Nalavadi said: "The purpose of this investment is to not only restructure the company's balance sheet, but more importantly, work closely with the promoters and management team, to drive rapid revenue growth and sustainable profitability improvement.