 "Drug discovery co SPARC seeks Sebi nod for Rs 250-cr rights issue (spot)")
Sun Pharma Advanced Research Company (SPARC) has filed a letter of offer with the Securities and Exchange Board of India to raise Rs 250 crore through a rights issue.
SPARC is promoted by Sun Pharmaceuticals Managing Director Dilip Shanghvi and is engaged in drug discovery and research.
It was hived off from Sun Pharmaceuticals and listed as a separate company in 2007. Shanghvi, other family members and group companies own 62 per cent in the company. Sun Pharmaceuticals does not own shares in SPARC.
This is the company's second rights issue and in 2012 SPARC had raised Rs 198 crore from existing share holders.
In its filing with Sebi, the company said it would issue equity shares of face value of Re 1, raising Rs 250 crore from the offer. The company plans to use proceeds of the issue for pharmaceutical research and development, clinical trials and other corporate purposes. This includes an estimated expenditure of Rs 196 crore on research in novel drug delivery systems and new chemical entities.
SPARC, which carries out research for Sun Pharmaceuticals, earned a revenue of Rs 158 crore in FY15 and posted a net loss of Rs 39 crore. In the previous year it had earned Rs 177 crore in revenue and made a profit of Rs 30 crore.
