The rights issue of Bal Pharma, Bangalore-based medium sized pharmaceutical company, has been oversubscribed 1.6 times. It has seen a fund generation of Rs 13.65 crore, as against the issue amount of Rs 11.75 crore. |
Bal Pharma issued 39.18 lakh equity shares of Rs 10 each to the existing shareholders on rights basis in the ratio of 3:5 at a price of Rs 30 per equity share, i.e. at a premium of Rs 20 per share amounting to Rs 11.75 crore. |
With the amount raised, the company plans to partly fund two new manufacturing facilities - one for manufacture of APIs near Bangalore with an annual capacity of 48 tonnes at an investment of Rs 13.75 crore and another for manufacture of formulations, in a northern state where fiscal incentives are offered, with an annual capacity of 720 million tablets and 240 million capsules, at an investment of 18.52 crore, the overall investment totalling Rs 32.27 crore. |
During the fiscal 2003-2004, the company's turnover was Rs 62 crore and has consistently been paying dividend continuously for the last five financial years. |