Bafna Pharmaceuticals today said it will raise nearly Rs 18 crore via issue of shares and warrants on preferential basis to promoters and other strategic investors.
The company's board, in its meeting held on December 6, has approved to issue and allot equity shares and equity warrants of the company on preferential basis to promoters and other strategic investors, Bafna Pharma said in a statement.
"The company has recently received approvals for many products from regulated market and emerging markets. And now the company is looking for inorganic growth opportunity for which the funds are being raised," Bafna Pharmaceuticals CMD Bafna Mahaveer Chand said in a statement.
As per the approval, 17 lakh shares of Rs 10 each will be allotted to strategic investors, 14 lakh warrants of Rs 10 each to be allotted to strategic investors and 9.18 lakh warrants of Rs 10 each to be allotted to promoters, it said.
"On the preferential allotment basis, 20.02 per cent of the post issue equity share capital of the company will be raised subject to the approval of the members of the company," it said.
An extra ordinary general meeting of the shareholders of the company will be convened on January 3, 2011 to get their approval, it added.
Shares of Bafna Pharma today closed at Rs 45.50 on the Bombay Stock Exchange, down 1.09 per cent from its previous close.