Natco Pharma extends gain after QIP launch
In past four trading sessions, the stock gained 9% from Rs 931, as compared to 0.57% decline in the S&P BSE Sensex.
The board of directors of Natco Pharma at their meeting held on November 2, had approved to raise up to Rs 1,500 crore through various modes including QIP, Global Depository Receipts (“GDRs”) or American Depository Receipts (“ADRs”) or Foreign Currency Convertible Bonds (“FCCBs”) or fully convertible /partly convertible debentures, etc.
The company intends to deploy Rs 600 crore from the net proceeds towards capital expenditure. The proposed capital expenditure includes cost for building and other civil works and plant and machinery, in respect of its manufacturing facilities in Kothur, Telangana; Mekaguda, Telangana; Manali, Chennai; and Visakhapatnam, SEZ. The proposed capital expenditure also includes cost for procurement of equipment for our research and development facilities in Hyderabad and Kothur, Telangana.
The company said its board is scheduled to meet on or after December 14, 2017 to consider and approve the issue price including discount, if any. The board approved the floor price of the QIP at Rs 937.63 per share. The company will not offer discount of more than 5% on the floor price.
At 09:53 AM; the stock was trading 4% higher at Rs 1,000, against 0.06% decline in the benchmark index. It touched a record high of Rs 1,080 on June 9, 2017 in intra-day trade. In past three months, it rallied 26% against 2.5% rise in the Sensex.