Wockhardt launches QIP to raise funds; Check floor price, other details

D rug manufacturer Wockhardt Ltd.’s Capital Raising Committee has approved the launch of the company’s Qualified Institutional Placement (QIP) on Wednesday evening, the company said in an exchange filing.

However, the quantum of funds the company plans to raise has not been specified.

Floor price for the QIP has been fixed as ₹544.02 per share, which is almost at par with Wockhardt’s closing price of ₹546 on Wednesday.

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.