Piramal Pharma Ltd. has received approval from the Securities and Exchange Board of India to raise Rs 1,050 crore through a rights issue.
The company will issue around 12.96 crore fully paid-up equity shares of face value of Rs 10 each at a price of Rs 81 per share, according to an exchange filing.
The rights entitlement ratio is 5:46, which means that for every 46 shares held in the company, a shareholder will be entitled to five rights shares. The record date for the rights entitlement is Aug. 2 and the issue will open on Aug. 8 and close on Aug. 16.
Through the rights issue, proposed by the board in February, the company plans to raise Rs 1,050 crore for repaying debt and general corporate purposes, it said.
Shares of Piramal Pharma were trading 2.96% lower at 10:43 a.m. compared to a 0.23% decline in the benchmark BSE Sensex.
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