Cipla rose 0.58% to Rs 571.75 at 9:30 IST on BSE after the company said it will seek shareholders approval to raise up to Rs 4000 crore via issue of securities in both domestic and global markets.
The announcement was made after market hours yesterday, 19 December 2016.Meanwhile, the BSE Sensex was up 51.33 points, or 0.19%, to 26,426.03.
On the BSE, so far 6,433 shares were traded in the counter, compared with average daily volumes of 1.38 lakh shares in the past one quarter. The stock had hit a high of Rs 574.50 and a low of Rs 570.50 so far during the day.
The stock hit a 52-week high of Rs 660 on 29 December 2015. The stock hit a 52-week low of Rs 458.25 on 25 May 2016. The stock had outperformed the market over the past 30 days till 19 December 2016, rising 3.40% compared with the 0.86% rise in the Sensex. The scrip had also outperformed the market in past one quarter, falling 5.56% as against Sensex's 7.53% decline.
The large-cap drug maker has equity capital of Rs 160.88 crore. Face value per share is Rs 2.
Cipla said its board has approved raising funds up to Rs 2000 crore. It could be via issue of shares or American Depository Receipts (ADRs) or Global Depository Receipts (GDRs) or Foreign Currency Convertible Bonds (FCCBs) or other securities, whether denominated in rupee or foreign currency through a public issue or a private placement, it said.
The board also approved raising of funds up to Rs 2000 crore by issue of non convertible debentures (NCDs) or bonds, in rupee or foreign currency through a public issue or a private placement, it added. The fund raising is subject to necessary permissions sanctions and approvals and the company is seeking approval of shareholders for the aforesaid enabling resolutions by means of postal ballot, Cipla said.
On a consolidated basis, Cipla's net profit dropped 34.75% to Rs 354.34 crore on 8.66% rise in net sales to Rs 3671.88 crore in Q2 September 2016 over Q2 September 2015.
Cipla is a global pharmaceutical company.
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