Wockhardt launches QIP at Rs 544/share floor price; shares jump

Wockhardt QIP news: Wockhardt shares surged on Thursday after the Mumbai-headquartered pharmaceutical and biotechnology company launched a qualified institutional placement (QIP) at a floor price of Rs 544.02 per equity share, after prior approval from its capital raising committee. 

Wockhardt shares gained as much as 4.4 per cent to Rs 570 in intraday trade on NSE. The stock closed 0.32 per cent higher at Rs 547.9 on NSE. 

Wockhardt QIP details

The company's QIP was almost at par with the previous day's close of its stock, at Rs 546 apiece.

"We wish to inform you that the Capital Raising Committee of the Company, in its meeting held today i.e. 20th March, 2024, has inter alia considered and passed the following resolutions:(i) authorising the opening of the Issue today, i.e. on 20th March, 2024; (ii)approving the floor price being Rs 544.02 per Equity Shares for the Issue as prescribed under the SEBI ICDR Regulations; and (iii)approval and adoption of the preliminary placement document dated 20th March 2024, and the draft of application form, in connection with the Issue," the company said in a regulatory filing post-market hours on Wednesday.

Wockhardt may offer a discount of not more than five per cent to the floor price while determining the issue price of the QIP.

"We further wish to inform you that the 'Relevant Date' for the purpose of the Issue, in terms of the SEBI ICDR Regulations is 20th March, 2024 and accordingly the floor price in respect of the Issue, based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations, the Company may, at its discretion, offer a discount of not more than 5% (five percent) on the floor price so calculated for the Issue," the filing added.

The drug manufacturer also said that a meeting of its board was scheduled on Tuesday, March 26, to consider the QIP.

What is a QIP?

A QIP is a method by which a company raises funds by allotting shares to eligible institutional buyers.

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