Wockhardt launches QIP to raise up to ₹570 crore; Check floor price, other details

The indicative issue price is said to be ₹517 per share, which is a 5.3% discount to the closing price on Wednesday.

In case the greenshoe option is used, the total equity dilution post the QIP could be 7.11% of post-issue paid-up equity share capital.

The company's Capital Raising Committee will meet again on March 26 to determine the issue price for the QIP along with other details.

A QIP is a method by which a company raises funds by allotting shares to eligible institutional buyers.

Wockhardt may offer a discount of not more than 5% of the floor price while determining the issue price of the QIP, as per their statement.

In July last year, Wockhardt's board had approved a related party transaction to avail loans from Khorakiwala Holdings and Investments Private Ltd. worth ₹1,600 crore. However, the proposal was rejected by the company's shareholders during its AGM in August.

However, the shareholders had authorised the company's board to raise up to ₹1,600 crore through a QIP or through the issue of other eligible securities.

Wockhardt has been in the news over its drug WCK 5222 in recent times. On March 12, a European Journal had reported that the drug was used successfully in a complicated renal transplant case.

Shares of Wockhardt ended 1% lower on Wednesday at ₹546. The stock, over the last 12 months, has gained over 200%. Based on the December shareholding pattern, promoters of Wockhardt held a 54.93% stake in the company.