Bajaj Healthcare Approves Issuance of Equity Shares Worth Rs.137 Crores

Yesterday, Bajaj Healthcare Limited’s Board of Directors approved several resolutions at their board meeting which was held to comply with SEBI regulations, including decisions on increasing the company’s authorized share capital, issuing equity shares, and convertible equity warrants to strengthen the company’s financials.

Authorized Share Capital

The board approved an increase in the authorized share capital from Rs.14 crore to Rs.25 crore by creating an additional 2.2 crore equity shares, each valued at Rs.5. Consequently, the company’s total authorized share capital will now be divided into 5 crore equity shares of Rs.5 each. 

Equity Shares

Bajaj Healthcare approved the issuance of 40,44,852 equity shares on a preferential basis which will be issued to non-promoter category investors at a price of Rs.338 per share, which includes a premium of Rs.333. The total amount to be raised through this issuance is approximately Rs.136.72 crores. The preferential allotment will provide the company with enough capital to support its expansion plans.

Convertible Equity Warrants

The board also approved the issuance of 20,79,409 convertible equity warrants which will be issued to the promoter, promoter group, and non-promoter category investors at a price of Rs.338 each. The total amount to be raised through this issuance is around Rs.70.28 crores. Each warrant is convertible into one fully paid-up equity share, with the conversion option exercisable within 18 months from the date of allotment.

Key Appointments and EGM

The board appointed Mr. Haresh Sanghvi as the scrutinizer for the remote e-voting process at the upcoming Extraordinary General Meeting (EGM), scheduled for August 7, 2024. Additionally, Care Rating Limited has been appointed as the monitoring agency for the conduct of the preferential issue. 

Conclusion: In conclusion, Bajaj Healthcare’s decision to increase its authorized share capital and issue equity shares worth Rs.137 crores brings out an approach to strengthen its financial foundation. The preferential allotment of 40,44,852 equity shares and 20,79,409 convertible equity warrants will collectively raise approximately Rs.207 crores, crucial for driving growth and expansion and positioning Bajaj Healthcare well in the healthcare sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.