Granules India's QIP issue open for sale at floor price of Rs 127.63

Firm plans to raise Rs 500 cr via QIPs

The Hyderabad-based pharma major Granules India Limited has fixed the floor price of its Qualified Institutional Placement (QIP) offer at Rs 127.63 per share as the issue for receiving bids opened on Wednesday.

The QIP committee of Granules' board will meet again on September 25 to consider and determine the price of equity shares to be issued in the sale offer. The company may, at its discretion, also offer a discount of up to 5 per cent on the floor price in this private placement.

In June, Granules India had got the shareholders' approval to raise Rs 500-crore equity capital through the QIP route to meet its business needs. The management earlier said it would use the proceeds to meet the capital expenditure for its ongoing and future projects, apart from fulfilling the requirement of its subsidiaries. Funds will also be utilised to meet other working capital requirements, besides enabling the repayment of rupee term loans, among other things.

The company scrip closed at Rs 128.35, down 2.4 per cent, on Bombay Stock Exchange (BSE) on Thursday.

Granules, which had reported a total income of Rs 1,388 crore for the year ending on March 2016, is predominantly an active pharmaceutical ingredients (APIs) and pharmaceutical formulation intermediates (PFIs) maker. It also involved in finished dosages and contract manufacturing. Regulated markets account for 67 per cent of its revenues.

The company has eight manufacturing facilities and is planning to spend around Rs 1,000 crore in the next three years on further expansion.