In an exchange filing on Wednesday evening, Wockhardt disclosed that its Capital Raising Committee has given the green light for the initiation of the company’s Qualified Institutional Placement (QIP).
The floor price for the QIP has been fixed at Rs 544.02 per share, almost matching Wockhardt’s closing price of Rs 546 on Wednesday. Reports indicate that the total issue size is expected to reach Rs 570 crore, comprising an issue size of Rs 350 crore and a greenshoe option valued at Rs 220 crore.
Reports further suggest that the indicative issue price stands at Rs 517 per share, reflecting a 5.3% discount to Wednesday’s closing price. The potential utilization of the greenshoe option could result in a total equity dilution post-QIP of approximately 7.11% of the post-issue paid-up equity share capital.
To finalize the issue price and other pertinent details, Wockhardt’s Capital Raising Committee is scheduled to reconvene on March 26. The company may offer a discount of up to 5% of the floor price while determining the issue price for the QIP, as stated in their announcement.
It’s noteworthy that Wockhardt’s shareholders had previously granted authorization to the company’s board to raise up to Rs 1,600 crore through a QIP or the issuance of other eligible securities.
(With Inputs)
