SPARC gets Sebi nod to mop up Rs 250 crore via rights issue

Issue proceeds to be used for meeting pharma R&D expenses, clinical trials and other general corporate purposes

Drug discovery firm Sun Pharma Advanced Research Company (SPARC) has received markets regulator Sebi's approval to raise up to Rs 250 crore through a rights issue.

The company, which filed draft papers on September 18, 2015 seeking clearance from Sebi to raise funds through rights issue, obtained the approval on January 22.

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 lakh 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 proceeds 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.

EY, Inga Capital Pvt Ltd are the lead managers to the issue.

In May, the company's board had approved the proposal to raise up to Rs 250 crore through a rights issue.