SPARC files draft papers with Sebi for Rs 250-cr rights issue

Drug discovery firm Sun Pharma Advanced Research Company (SPARC) has filed draft papers with markets regulator Sebi to raise up to Rs 250 crore through a rights issue.
As per draft papers filed with Securities and Exchange Board of India (Sebi), the company will issue equity shares "aggregating up to Rs 25,000 lakhs to our existing equity shareholders on a rights basis."
In a rights issue, shares are issued to existing investors as per their holding at pre-determined price and ratio.
The proceed of the issue will be utilised for meeting costs related to pharmaceutical research and development, clinical trials and for other general corporate purposes.

SPARC was demerged from Sun Pharma as a pharma research and drug discovery company in 2007.
Ernst & Young Merchant Banking Services Private Limited, Inga Capital Private Limited are the lead managers to the issue.
Earlier in May, the company's board had approved the proposal to raise up to Rs 250 crore through a rights issue.