Morepen hits new high, again!
Morepen Labs had a lot of news to share yesterday and all of them good.
Firstly, it said that it has secured a $100-million or around Rs.750 crore investment from Switzerland-based Corinth Group, a global PE fund. Of this, as much as $32.5 million is proposed to be directly invested in the parent company Morepen Labs and the balance $67.5 million will get invested in the promoter group companies.
The company also said that it was looking at hiving off its diagnostic vertical into a separate entity an explore the option of an IPO over the next 3 -5 years.
The Board yesterday also approved the $32.5 million investment from Corinth Group wherein it will be allotted 5.85 crore shares on a preferential basis, taking a 9.41% stake in Morepen Labs.
The board also approved allotment of 5 crore fresh equity shares to the promoter group, at a price of Rs.38 per share. This is being done in lieu of the 98.5 million unsubscribed warrants issued in the last financial year which lapsed due to technical reasons. After subscription of all the warrants, the promoter’s stake in the company would go up to 44.28%, from 34.54%, on a fully diluted basis.
The company said that the funds being raised will be used for expansion of its R&D facilities, setting up of new API plant, establishing a “world-class facility” for finished dosages as per USFDA standards.
The company’s Board will be meeting on the 4th May for Q4FY21 and FY21 results.
The stock price soared yesterday to hit a new high at Rs.55.45, closing at Rs.55.20 and today, it once again opened higher at Rs.58.80 and soared to hit another new high at Rs.59.45, just 2% shy of its 10% UC of the day at Rs.60.70.