Wockhardt hit a lower limit of 5% at Rs 1206.50 after the company launched a qualified institutional placement (QIP) at a floor price of Rs 1,162.25.
The floor price indicates a steep discount of 8.5% over the stock's closing price on Wednesday.The media reported that the QIP is aimed to raise up to Rs 1,000 crore, with an additional greenshoe option of Rs 200 crore. A QIP is a method by which a company raises funds by allotting shares to eligible institutional buyers.
According to reports, the QIP is expected to dilute Wockhardt's equity by around 5.57% of its post-issue capital. Based on the September shareholding pattern, promoters of Wockhardt held a 51.99% stake in the company.
Mumbai-based Wockhardt is a research based global pharmaceutical and biotech company. Employing around ~2600 people and 27 nationalities, it has a presence in USA, UK, Ireland, Switzerland, France, Mexico, Russia and many other countries. It has manufacturing and research facilities in India & UK and a manufacturing facility in Ireland. Around 78% of its global revenues is coming from international businesses.
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