Zenotech to raise funds through rights issue

Drug firm Zenotech Laboratories is looking to raise funds through a rights issue to its existing shareholders.

The company’s board of directors has considered and approved the “raising of funds by way of offer and issue of equity shares to the existing shareholders of the company on a rights basis”, the firm said in a filing to BSE.

While it did not disclose the amount to be raised, the company said its board has constituted a committee of directors for the purpose.

The committee has been authorised “to determine terms of the rights issue including the quantum of issue, rights entitlement ratio, issue price, issue size, book closure or record date, entitlement, timing of the issue among others”, it added.

As per March 2016 shareholding pattern, the promoter and promoter group hold 66.85 per cent shares in Zenotech Laboratories while public shareholding is at 33.15 per cent. Out of this Sun Pharmaceuticals Industries has 46.85 per cent shares in the firm.