Morepen to receive investments worth Rs 243 crore from Corinth Investment Holdings

Morepen Laboratories Limited, a domestic pharmaceutical company, announced this morning that in the Extra-Ordinary General Meeting (EGM), its shareholders have given a go-ahead for issuing and allotting 585 lakh equity shares worth Rs 243.36 crore to Corinth Investment Holdings AG (headquartered in Switzerland). This brings the number of incoming investments to Rs 433 crore.  

In addition to this, the shareholders also approved five crore fully-convertible warrants amounting to Rs 190 crore to a promoter group company, Liquid Holdings Private Limited at the rate of Rs 38 per warrant/share. These warrants are to be converted into equity within the tenure of 18 months and within the limits prescribed in SEBI Substantial Acquisition of Shares & Takeovers (SAST) Regulations for the acquisition of share or voting rights in a financial year.    

The funds received shall be used for various purposes such as scaling up of the company’s R&D facilities, setting up a new USFDA standard active pharmaceutical ingredient (API) plant, establishing a world-class facility for finished dosages as per USFDA standards, investing in world-class diagnostics facilities, new age personal care & skincare brands.  

This development augurs well for the company as it paves the way for its future growth as well as creates wealth for the stakeholders. Reacting to this, at 2.57 pm, the share price of Morepen Laboratories Limited was trading at Rs 59.05, a rise of 2.70 per cent over its previous day’s closing price of Rs 57.50 on BSE.