Morepen inks deal with Avenue, to raise Rs 140cr

 "The entire Rs 140 crore being brought in by the company as fresh capital will be utilised for repayment to banks under Corporate Debt Restructuring (CDR) scheme for which a settlement has already been arrived at," the company informed BSE.

"Morepen Laboratories today announced the signing of a deal with Avenue Capital through its subsidiary G L India Mauritius III for a 14.99% stake in the company," it added.

As per share subscription agreement signed today, Avenue Capital is subscribing 3.85 crore shares at Rs 20 each for Rs 77.06 crore. In addition to this, the US fund would also subscribe to warrants up to 5% of the enhanced capital base for Rs 27.04 crore.

Besides, promoters would subscribe to warrants that can be converted into 10 crore equity shares, for Rs 60 crore.

Post subscription the promoter's stake in the company would stand at 46%, G L India Mauritius (Avenue Capital) would hold 14% and the public holding would be 38%.