InvestorQ : Why is Morepen Laboratories looking to raise over Rs.400 crore via equity?
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Why is Morepen Laboratories looking to raise over Rs.400 crore via equity?

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Deepa Salunkhe answered.
4 weeks ago
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Delhi based pharma major, Morepen Laboratories, has sought shareholder approval to raise Rs.433 crore through the allotment of shares. The latest EGM of the board convened on 20 May approved this fund raising. Morepen will issue a 58.50 million shares of Morepen for cash to Corinth Investment Holdings AG of Switzerland at a price of Rs.41.60 per share. This would aggregate to Rs.243.36 crore, which will take care of part of the funds to be raised.

In addition, Morepen will also allot 50 million fully-convertible warrants to a promoter group company, Liquid Holdings, at Rs 38 per warrant aggregating to Rs 190 crore for cash. These warrants will be converted into shares in the ratio of 1:1 after 18 months. Morepen is looking to scale up its Active Pharmaceutical Ingredients or API business in a big way. Corinth is a global private investment group with a strong franchise in life sciences.

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