Panacea Biotech shares surged as much as 17.4 percent to Rs 212.85 on Tuesday after India Resurgence Fund (IndiaRF), a fund promoted by Piramal Enterprises and Bain Capital Credit, invested Rs 992 crore in the pharmaceutical company.
"The company will use the proceeds for a one-time settlement with existing lenders, general working capital and growth requirements," it said in a press release.
The investment is structured by way of non-convertible debentures (NCDs) of up to Rs 864 crore and subscription amount of Rs 32 crore towards share warrants to be allotted on a preferential basis.
Subject to the exercise of warrants, IndiaRF (and its affiliates) will own a 10.4 percent stake in Panacea Biotec.
Commenting on the development, IndiaRF MD Shantanu Nalavadi said: "The purpose of this investment is to not only restructure the company's balance sheet but more importantly, work closely with the promoters and management team, to drive rapid revenue growth and sustainable profitability improvement."
At 10:00 am, the stock was trading 12 percent higher at Rs 203 as compared to 0.3 percent gain in BSE Sensex.
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First Published: Apr 9, 2019 10:03 AM IST
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