Solara Active Pharma Sciences Ltd has announced its decision to conduct a rights issue aimed at raising ₹449.95 crore. The pharmaceutical company disclosed this information in a regulatory filing on Thursday (May 9).
According to the filing, the rights issue will offer shares priced at ₹375 per equity share, inclusive of a premium of ₹365 per equity share. This pricing structure has been determined based on the 90-day Volume Weighted Average Price (VWAP) calculated as of July 5, 2023, the date when the rights issue was initially approved by the Board of Directors.
The rights issue will follow the entitlement ratio of one equity share for every three equity shares held by shareholders as of the record date, which has been set as May 15, 2024.
Scheduled to open on May 28, 2024, the rights issue will remain open for subscription until June 11, 2024. Choice Capital Advisors Private Ltd has been appointed as the lead manager for the issue.
VWAP, or volume-weighted average price, is a measure used to determine the average price of a security over a specified period, weighted by the volume of trades during that period.
The proceeds from the rights issue are expected to be utilized by Solara Active Pharma Sciences for various purposes, including expansion projects, working capital requirements, debt repayment, and general corporate purposes.
Solara Active Pharma Sciences is a leading pharmaceutical company known for its focus on active pharmaceutical ingredients (APIs) and intermediates. The rights issue reflects the company’s commitment to strengthening its financial position and supporting its growth initiatives in the pharmaceutical sector. Investors and shareholders are encouraged to review the detailed rights issue prospectus and related documents for further information on the offering.
