In a conversation with Anil Singhvi, Managing Editor at Zee Business, Devanshi Ashar, Research Analyst and Anchor said that from last year Marksans Pharma is witnessing good gains and now the company's board members are going to meet on June 15.

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"There is news that the Board of the company is going to hold a meeting on June 15 and will decide on the issuance of the warrants," Devanshi said. She added that talks are happening for issuing warrants to Orbimed Asia Mauritius as well.

 

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"Warrants of around 5 crore will be seen issued to the company while it will be seen investing around Rs 356 crore," she said.

The Market Analyst said that the issue will be made at Rs 74 per share or per warrants. "The investment is being done for 10.5 percent shares. If you will convert it into the total market value then after Friday's circuit also the market cap will be around Rs 3,300 crore," Devanshi added.

 

Promoters will also be seen taking part in the issuance of the warrants. They will be taking around 10 lakh shares at the rate of Rs 74 per share, she said.

Devanshi further said that the balance sheet of the company is also very strong and it is a debt-free company. In FY21, the company had surplus cash of around Rs 212 crore while the cash flow from the operations stood at around Rs 180 crore.

She added that 90 percent of the revenues of the company comes from exports and it focuses more on the US and UK. "The company has said that in the coming future it will launch 3-4 products in the US," she added.

"The company also has a big exposure in the UK. 42 percent of the revenue of the company comes from UK," she said.

Devanshi further added that the company can be seen growing, will launch good products in future, in all fundamentals are good and the news of Orbimed Asia is also very positive. These all can be the reason behind the stock movement of the company, she said.

While speaking on the topic, Anil Singhvi said that the company was suggested in Malamal Weekly on December 17, 2019, at around Rs 15 or 16.

He added that one of the biggest pharma funds in the world is buying 10 percent of the company which is a big thing.