Solara Active Pharma Announces Rights Issue to Raise ₹449.95 Crore for Growth Initiatives

Solara Active Pharma Sciences Ltd, a leading manufacturer of Active Pharmaceutical Ingredients (APIs) and Contract Research and Manufacturing Services (CRAMS), unveiled the details of its upcoming rights issue on May 09, 2024. This strategic initiative aims to raise ₹449.95 crore to fuel the company’s continued growth and expansion plans.

Attractive Offer for Existing Shareholders

The Rights Issue Committee meticulously determined the terms of the offering. Eligible shareholders will be entitled to receive one new equity share for every three shares they hold on the record date, set for May 15, 2024. The issue price is set at a compelling ₹375 per share, which includes a premium of ₹365.

This price has been strategically calculated based on the 90-day volume-weighted average price (VWAP) as of July 5, 2023, the date the Board initially approved the rights issue.

Promoter Commitment and Timeline

Solara’s promoters have demonstrably reaffirmed their confidence in the company’s trajectory by committing to subscribe to their full entitlement of shares offered in the rights issue. This strong commitment indicates their belief in the company’s long-term prospects.

The issue is scheduled to open for subscription on May 28, 2024, and close on June 11, 2024. Choice Capital Advisors Private Limited will serve as the Lead Managers for the issue, ensuring a smooth and efficient process for all participating shareholders.

The issue will initially be partly paid, followed by 2 calls as follows:

* Assuming a Full Subscription

About Solara Active Pharma Sciences Ltd

Solara Active Pharma Sciences Ltd offers a basket of diversified, high-value Commercial APIs and Contract manufacturing services in over 75 countries. On May 10, 2024, the Solar Active Pharma shares opened at ₹494.95 and touched the day high of ₹464.75 at 09:35 AM.

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.