Mid-size drug maker Suven Life Sciences Limited has raised Rs 200 crore (approximately $32 million) through qualified institutional placement (QIP) route to fund its clinical development programme and capital expenditure, according to a stock market disclosure.
The pharmaceutical firm allotted 1,04,53,690 equity shares at a price of Rs 191.32 per share to qualified institutional investors.
Following this, the stake holding of promoters in the company will decrease to about 59 percent as against 64.76 per cent on September 30, 2014.
“This is our public raise after 10 years since our preferential issue during 2004. One of the strategic objectives of this deal was to get the right set of long-term investors of high credibility and the willingness to back the long-term business plan of our company,” Venkat Jasti, chairman, Suven Life Sciences Limited said.
Anand Rathi Advisors Limited acted as the Sole Global Co-ordinator and Book Running Lead Manager for this QIP.
Amit Rathi, managing director of Anand Rathi Advisors said, “The response to this transaction, including the pedigree of investors, has been fantastic. This sets up the company to catapult itself into the next exciting phase of growth.”
Suven Life Sciences is a biopharmaceutical company focused on discovering, developing and commercialising novel pharmaceutical products.
In the quarter ended on September 30,2014, Suven Life Sciences’ net profit almost halved to Rs 24.84 crore, while its net sales declined 7.6 per cent to Rs 139.83 crore from the corresponding quarter last fiscal.