Wockhardt hits the roof after completing Rs 480-cr QIP issue

Wockhardt locked in upper circuit of 5% at Rs 555.80 after pharmaceutical company announced the completion of fundraising of Rs 480 crore through qualified institutional placement (QIP) of equity shares.

The issue opened on Wednesday, 20 March 2024 and concluded on Tuesday, 26 March 2024, with a total of 92,85,163 equity shares being allotted. The shares were priced at Rs 517 per share, resulting in an issue size of approximately Rs 480 crore.

The issue price of Rs 517 is at a discount of Rs 27.02 or 4.97%, to the floor price of Rs 544.02 per equity share set for the QIP issue.

The QIP witnessed participation from various institutional investors, with the allottees receiving more than 5% of the total issue size.

ICICI Prudential's mutual funds emerged as the largest allottee, securing a substantial 20.83% allocation. Following closely behind, Tata Indian Opportunities Fund and Prashant Jain's 3P India Equity Fund securing 14.58% and 16.04% respectively. Mirae Asset's mutual Funds received allocation of 9.37%.

Madhusudan Kela's Cohesion Mk Best Ideas Sub-Trust and Invesco India Smallcap Fund received allocation of 6.25% each, while Gagandeep Credit Capital and Subhkam Ventures I received allocation of 5.46% and 5.38% respectively.

In July, 2023, the companys board approved a related party transaction to avail loans from promoter, Khorakiwala Holdings and Investments Private Ltd worth Rs 1,600 crore. However, the proposal was rejected by the companys shareholders during its AGM in August 2023.

However the shareholders had authorized the companys board to raise up to Rs 1,600 crore through QIP or the issue of other eligible securities.

As per the shareholding pattern in December 2023, the promoters of Wockhardt held a 54.93% stake in the company.

Wockhardt is a global pharmaceutical and biotechnology company engaged into developing, manufacturing and marketing of finished dosage and biopharmaceutical formulations, active pharmaceutical ingredients (APIs) and vaccines.

The pharma company reported a consolidated net loss of Rs 83 crore in Q3 FY24 as compared with net loss of Rs 96 crore posted in Q3 FY23. Total revenue stood at Rs 701 crore in Q3 FY24, rose marginally 0.3% year on year.

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