Piramal Pharma Ltd on Thursday announced that its rights issue, that was approved earlier this year would be open for subscription from August 8 to August 16.
The company’s committee of directors (rights issue) at its meeting held on July 27, approved issuing around 13 crore fully paid-up equity shares each for an amount aggregating up to Rs 1,050 crore.
The shares under the rights issue will be offered at Rs 81 per fully paid-up equity share.
The committee has fixed August 2 as the record date for the purpose of determining the existing equity shareholders entitled to receive the rights entitlement in the rights issue.
Entitlement ratio for the rights issue has been fixed at 5:46. This means that eligible equity shareholders on the record date can subscribe for 5 rights equity shares for every 46 equity shares held of the company.
After the rights issue (assuming full subscription), the company’s outstanding fully-paid equity shares would reach 132.3 crore compared to 119.3 crore shares prior to the issue.
To recall, Piramal Pharma had approved the rights issue of fully paid-up equity shares of the company of face value of Rs 10 each in its board meeting dated February 8, 2023. The issue got the go-ahead from market regulator Securities and Exchange Board of India (Sebi) last week after the company had submitted the draft papers in March.
The company plans to use the proceeds from the issue for payment of debt and general corporate purposes.
Shares of Piramal Pharma are trading 2.3 percent lower at Rs 106.
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