Kopran to mop up Rs 28 cr via rights issue
By Praveen Chandran | 03 May 2002
Mumbai: The domestic pharma company Kopran Ltd, promoted by the Somanis-controlled Parijat group, has decided to mobilise Rs 28 crore through a fresh rights issue for its existing shareholders.
The company has appointed KJMC Global Market Ltd as lead manager and UTI Bank as banker for the issue. KJMC officials say the company will offer 7,150,000 equity shares of Rs 10 each for cash at a premium of Rs 30 per share, which aggregate to Rs 2,860 lakh on a rights basis.
Kopran financial advisor Lalit Ratadia says the ratio of the issue will be one equity share for every two equity shares held as on the record date of 28 March 2002. The rights issue programme will open on 8 May 2002 and closes on 7 June 2002. The promoter’s holding in Kopran is around 65 per cent. Financial institutions hold around 13 per cent, while the balance is held by the public.
Kopran officials say the company had plans to mobilise around Rs 125 crore through a private placement for its expansion activities. But due to unfavourable market conditions, the private placement failed to take off. Subsequently, the company had sold its leading brand Aten to Zydus Cadila for around Rs 92 crore. “Kopran’s move to go for the Rs 28-crore rights issue programme is to mobilise the remaining funds to part-finance its expansion activities.”
Kopran’s expansion activities include acquisition of brands, launching of new products and to diversify into new growth-oriented sectors. The company is also making a major push for entering the US formulation generic market. It is also seeking strategic alliances with US companies to gain an entry into the lucrative American market, for which it has roped in KPMG as consultant.
The company has appointed KJMC Global Market Ltd as lead manager and UTI Bank as banker for the issue. KJMC officials say the company will offer 7,150,000 equity shares of Rs 10 each for cash at a premium of Rs 30 per share, which aggregate to Rs 2,860 lakh on a rights basis.Kopran financial advisor Lalit Ratadia says the ratio of the issue will be one equity share for every two equity shares held as on the record date of 28 March 2002. The rights issue programme will open on 8 May 2002 and closes on 7 June 2002. The promoter’s holding in Kopran is around 65 per cent. Financial institutions hold around 13 per cent, while the balance is held by the public.
Kopran officials say the company had plans to mobilise around Rs 125 crore through a private placement for its expansion activities. But due to unfavourable market conditions, the private placement failed to take off. Subsequently, the company had sold its leading brand Aten to Zydus Cadila for around Rs 92 crore. “Kopran’s move to go for the Rs 28-crore rights issue programme is to mobilise the remaining funds to part-finance its expansion activities.”
Kopran’s expansion activities include acquisition of brands, launching of new products and to diversify into new growth-oriented sectors. The company is also making a major push for entering the US formulation generic market. It is also seeking strategic alliances with US companies to gain an entry into the lucrative American market, for which it has roped in KPMG as consultant.