Cadila Healthcare shares gained as much as 3 per cent on Friday as it got nod from the government to raise Rs 5,000 crore via fresh equity.
The Foreign Investment Promotion Board (FIPB) on Thursday approved five foreign investment proposals which also included Cadila's Rs 5,000 crore equity infusion proposal.
Under this plan, Cadila will infuse equity of up to Rs 5,000 crore through issue of shares to qualified institutional buyers (QIBs) through qualified institutional placement for expansion and fresh acquisition purpose.
At the current market price the proposed Rs 5,000 crore fund raising will lead to 16 per cent equity dilution for the promoters, analysts say.
As of 9.39 a.m., Cadila Healthcare shares traded 1.49 per cent higher at Rs 319.85 apiece compared to 0.17 per cent gain in the broader Sensex.
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