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Wockhardt raises $13.4M through IPO of European arm

19 December, 2013

Mumbai-based generic drugmaker Wockhardt Ltd has raised CHF 11.86 million ($13.37 million) in an initial public offering (IPO) through its Swiss arm Wockhardt Bio AG, as per a stock market disclosure.

“With reference to earlier announcement dated November 11, 2013, Wockhardt has now informed BSE that Wockhardt Bio AG, Switzerland has allocated 2,348,000 ordinary shares of CHF 1.00 each representing 5 per cent of the post diluted capital for subscription at a price of CHF 5.05 per ordinary share for its initial public offering. The ordinary shares of Wockhardt Bio AG are scheduled to be listed on December 19, 2013 on the Berne Stock Exchange, Switzerland,” the company said in the filing. 

On November 11, 2013, the company announced that its board has endorsed the decision of its Switzerland-based subsidiary Wockhardt Bio AG to undertake a European listing. 

Wockhardt is a global pharmaceutical and biotechnology major which derives around three fourth of its revenues outside India. 

The firm has three research centres and 12 manufacturing plants across, India, the US, the UK and Ireland. Its business ranges from the manufacturing and marketing of pharmaceutical and bio-pharmaceutical formulations, active pharmaceutical ingredients (APIs) and vaccines.

The company was hit by FCCB redemption pressure in the aftermath of the financial meltdown in 2008-09. It later restructured its debt, sold certain assets and businesses and posted strong financial recovery lately. 

However, it has been facing headwinds with some of its production units coming under the scanner of overseas drug authorities. Most recently it received an import alert from US Food and Drug Administration (FDA) for its Chikalthana plant at Aurangabad in Maharashtra. This is the second import alert issued by US FDA to the company, after issuing one for the Waluj facility near Aurangabad early this year. Earlier, its Good Manufacturing Practice (GMP) certification was revoked by UK’s drug regulator a few months ago. Recently, its Daman facility also saw its GMP certification revoked. 

Shares of Wockhardt closed at Rs 417.25 a unit on the BSE, up 9.6 per cent in a weak Mumbai market on Thursday.

(Edited by Joby Puthuparampil Johnson)


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Wockhardt raises $13.4M through IPO of European arm

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