Shilpa Medicare shares hit 52-week high after pharma firm launches QIP

Shilpa Medicare share price: Pharmaceutical firm Shilpa Medicare's stock surged to scale a 52-week high on Tuesday, continuing to rise for the third trading session in a row, after the company launched a qualified institutional placement (QIP) of shares at a floor price of Rs 477.33 apiece. The stock of Shilpa Medicare jumped by as much as Rs 21.6, or 4.3 per cent, to Rs 526.8 apiece on BSE, surpassing an existing 52-week high of Rs 523.3 registered on Monday.

At 10:30 am, Shilpa Medicare shares held on firmly to the green with a gain of 3.8 per cent at Rs 524.6 apiece.

However, the floor price implies a discount of 5.5 per cent to the market price. 

The company's board is scheduled to meet on April 12 to consider the issue price for the QIP. 

The pharma firm can offer the issue at a discount of not more than five percent of the floor price.

Shilpa Medicare Q4 results date

Shilpa Medicare is yet to announce the date on which its board will consider its quarterly results for the final quarter of FY24. 

Shilpa Medicare Q3 results

For the quarter ended December 31, 2023, Shilpa Medicare reported a consolidated net loss of Rs 6.6 crore as against a consolidated met profit of Rs 9.6 crore for the corresponding period a year ago. Its quarterly revenue decreased 3.6 per cent to Rs 262.5 crore, according to a regulatory filing. 

What is a QIP?

Qualified institutional placement (QIP) is a method that enables listed companies to raise funds by issuing securities to institutional investors. QIPs serve as a vital tool for companies looking to bolster their financial position and fuel growth initiatives.

Companies launch QIPs for various reasons, primarily to strengthen their financial position, fund expansion plans, reduce debt, or meet working capital requirements.

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