Morepen Laboratories Archived Significant Milestone: Raises ₹200 Crore Via QIP

Morepen Laboratories Limited has successfully concluded its Qualified Institutional Placement (QIP) by raising ₹200 crores. The issue witnessed an overwhelming response, garnering bids worth ₹335 crores, indicating strong investor confidence in the company’s growth prospects.

Global Investor Participation

The QIP attracted participation from prominent global investors, including Bank of America Securities Europe, Samsung India, Citigroup, Societe Generale, Nomura, BNP Paribas, Morgan Stanley, and Eminence. Their investment underscores the company’s strong market position and growth potential.

Strategic Fund Utilisation

The proceeds from the QIP will be primarily utilised to accelerate Morepen’s growth trajectory, expand its market presence, and strengthen its financial position. The funds will be invested in enhancing production capacities, backward integration, and research and development initiatives.

Focus on Core Business Segments

Morepen aims to solidify its leadership position in the medical devices and APIs segments. The additional capital will be deployed to build larger capacities for glucometers and BP monitors, as well as to develop new API molecules.

Strong Financial Performance

The company has demonstrated consistent growth in recent years, with a CAGR of 19.6% based on internal accruals. In FY24, Morepen recorded impressive growth in revenue, EBITDA, and PAT, driven by strategic investments and market expansion efforts.

Management Outlook

The management remains optimistic about the company’s future prospects and is committed to further enhancing its market share. The successful QIP is expected to be a catalyst for accelerated growth and value creation for shareholders.

Mr Sushil Suri, Chairman and Managing Director of Morepen Laboratories, commenting on this significant milestone, stated, “First of all, I would like to thank all the shareholders and other stakeholders, particularly all the institutional investors, for expressing their unrelenting support always, and particularly this fundraise via QIP which marks a pivotal moment in the long-term value creation journey of the company. The company’s unique business model backed by an excellent leadership team will ensure that momentum for Revenue and EBITDA growth keep growing at the same pace, rewarding our stakeholders, including our investors over the long-term.”

He further added, “The infusion of equity capital will empower us to enhance our manufacturing capabilities, explore untapped markets and grow in different geographies, reaffirming our position as a market leader in Home Medical Devices and a preferred partner in the global pharmaceutical landscape”.

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