Hyderabad-based pharmaceutical company Natco Pharma has raised Rs 67.5 crore through a qualified institutional placement (QIP) even as the Sun Pharmaceutical promoter Dilip S. Shanghvi is building stake in the company.
Natco has issued 3 million shares, which according to VCCircle, involves a dilution of 9.6 per cent stake. The floor price of the QIP issue was Rs 215.6. However, the shares were issued at Rs 225 each.
Shares of Natco Pharma were trading at Rs 265.8 a piece on the BSE at 2:42 pm, down 4.59 per cent. Incidentally, over the past three trading sessions, the share price of Natco jumped nearly 25 per cent as Shanghvi, chairman of India’s largest pharmaceutical firm, started buying into the company.
Shanghvi has picked up 1 million shares of Natco in two bulk deals on Monday and Wednesday. He will own 3.2 per cent of the post-QIP issue share capital at a cost of Rs 24-25 crore, according to VCCircle estimates.
Fortune Financial (India) Ltd was the book running lead manager (BRLM) to the QIP and Rajani Associates was the legal counsel.
Natco manufactures active pharmaceutical ingredients, their intermediaries and finished dosage formulations (FDF) with focus on the oncology segment. It also operates a retail pharmacy store in Pennsylvania, USA, and has presence in the Brazilian market.
Natco has been granted 74 patents in India and 17 patents in international markets as on March 31, 2011. The company owns and operates six manufacturing facilities with eight production units.
Natco’s total income for FY11 stood at Rs 464.3 crore with net profit at Rs 53.5 crore. For the six months ended September 30, its consolidated total income was Rs 258.71 crore with net profit after tax at Rs 29.97 crore.