Wockhardt Ltd. approved a rights issue to raise funds for repaying debt.
The company's board approved issuance of equity shares worth up to Rs 1,000 crore to existing shareholders, according to its exchange filing. The objective of fundraising is to meet repayment of its subordinated debt which is due, funding research and development initiatives, and general corporate purposes.
The Mumbai-based drugmaker is yet to decide on the terms of the issue, including the rights entitlement ratio, the issue price, record date, and timing of the issue.
In February 2020, the company sold its domestic branded generics division comprising a portfolio of 62 products and a manufacturing facility at Baddi in Himachal Pradesh, to peer Dr. Reddy's Laboratories Ltd., which helped it pare debt.
BloombergQuint earlier reported that the company was looking to either sell more assets or get an equity partner.
The stock, trading 3% higher before the board approval was notified, pared some of the gains. It was trading 1.28% higher at 1.22 p.m. compared with 1.2% decline in S&P BSE Sensex.
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