Morepen Laboratories Ltd on Wednesday said its board has approved $32.50 million investment in the firm by Switzerland-based Corinth Group, out of a total of $100 million investment by the private investment firm. The balance $67.50 million will be invested in promoter group companies.
The said investment is subject to approval of shareholders and other regulatory bodies, after which Corinth will be allotted 58.5 million new equity shares on preferential basis, equivalent to 9.41% equity stake, a BSE release said.
The company also approved allotment of 50 million fresh equity shares to the promoter group in lieu of the 98.50 million unsubscribed warrants issued in the last financial year which lapsed due to technical reasons. The new allotment would be at Rs38 per share, which will be 52% higher than the earlier price of Rs25 per warrant. After subscription of all the warrants, the promoter’s stake in the company will go up to 44.28%, from 34.54%, on a fully diluted basis, the BSE release added.
Proceeds from the issue will be used for expansion of its research and development centres to meet active pharmaceutical ingredient demand, setting up new API plant, establishing a facility for finished dosages in Baddi, Himachal Pradesh, and investment into diagnostics facilities, including the manufacture of critical inputs to meet regulated market standards.
