Wockhardt shares locked in 5% upper circuit after its Rs 480 crore QIP issue

Shares of the small-cap pharma major Wockhardt were locked in the 5 per cent upper circuit at Rs 555.8 apiece on the BSE in Wednesday's session (March 27, 2024) as the company amassed Rs 480 crore via the QIP (qualified institutional placement) issue.
 
On the previous day, the stock closed at Rs 529.35 apiece on the BSE.
 
The drug manufacturer's Capital Raising Committee approved and determined the allocation of 92.85 lakh shares at an issue price of Rs 517 per share, which includes a discount of Rs 27.02, or 4.97 per cent, to the floor price of Rs 544.02 per share.

ICICI Prudential, Mirae Asset Management, 3P India Equity Fund I, Tata Indian Opportunities Fund, Invesco India Smallcap Fund, Gagandeep Credit Capital and Subhkam Ventures are some of the funds that have been issued over 5 per cent of the equity shares as part of the QIP.

After the allotment of shares under the issue, the company's paid-up share capital increased to Rs 76.70 crore from Rs 72.05 crore.

The company launched its QIP on March 20 to raise Rs 570 crore, which, as per reports, comprised a base size of Rs 350 crore and a greenshoe option worth Rs 220 crore.

The stock of Wockhardt has risen 246% in the past 12 months, while Nifty 50 during the same time has gained 31 per cent.

Wockhardt is engaged in manufacturing and marketing pharmaceutical and bio-pharmaceutical formulations, active pharmaceutical ingredients (APIs) and vaccines. The company is a smallcap pharma major commanding a m-cap of Rs 8009 crore.