Wockhardt Announces QIP Launch with Floor Price of ₹544.02 per Share

On Wednesday, drug manufacturer Wockhardt Ltd stated in an exchange filing that the company’s Capital Raising Committee agreed to the launch of the company’s Qualified Institutional Placement (QIP).

Details of the QIP

On March 20, 2024, Wockhardt Ltd informed the stock exchanges that their Capital Raising Committee had considered and approved the Qualified Institutions Placement of equity shares of a face value of ₹ 5 each. The floor price for the Qualified Institutions Placement has been set as ₹544.02 per share, which is almost close to Wockhardt’s closing price of ₹546 on Wednesday.

Regarding the same, the company said, “The Capital Raising Committee of the Company, in its meeting held today i.e. 20th March 2024, has inter alia considered and passed the following resolutions: (i) authorising the opening of the Issue today, i.e. on 20th March 2024; (ii) approving the floor price being ₹544.02 per equity shares for the Issue as prescribed under the SEBI ICDR Regulations; and (iii) approval and adoption of the preliminary placement document dated 20th March 2024, and the draft of application form, in connection with the Issue.”

The company further stated, “The relevant date for the purpose of the Issue, in terms of the

SEBI ICDR Regulations is 20th March 2024, and accordingly, the floor price in respect of the Issue, based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations, the company may, at its discretion, offer a discount of not more than 5% on the floor price so calculated for the issue.”

Wockhardt Ltd added that the Capital Raising Committee will meet again on March 26, 2024, to decide the issue price for the QIP along with other details.

In July 2023, Wockhardt’s board approved a related party transaction to avail loans from Khorakiwala Holdings and Investments Private Ltd worth ₹1,600 crore. However, the proposal was rejected by the company’s shareholders during its AGM in August 2023.

However, the shareholders had authorised the company’s board to raise up to ₹1,600 crore through a QIP or the issue of other eligible securities.

As per the shareholding pattern in December 2023, the promoters of Wockhardt held a 54.93% stake in the company.

On Thursday, March 21, 2024, the share price of Wockhardt Ltd opened at ₹570.00, touching the day’s high at ₹570.00, as of 12:23 PM on the NSE.

About Wockhardt Ltd

Wockhardt is a global pharmaceutical and biotechnology organisation that is involved in manufacturing injectables, finished dosage formulations, orals, biopharmaceuticals and more.

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