Express Pharma

SPARC files draft papers with Sebi for Rs250 crore rights issue

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The proceeds of the issue will be utilized for meeting costs related to pharma R&D, clinical trials and for other general corporate purposes

Drug discovery firm Sun Pharma Advanced Research Co (SPARC) has filed draft papers with markets regulator Sebi to raise up to Rs 250 crore through a rights issue.

As per draft papers filed with the Securities and Exchange Board of India (Sebi), the company will issue equity shares “aggregating up to Rs 25,000 lakhs to our existing equity shareholders on a rights basis.”

In a rights issue, shares are issued to existing investors as per their holding at pre-determined price and ratio. The proceeds of the issue will be utilised for meeting costs related to pharmaceutical research and development, clinical trials and for other general corporate purposes.

SPARC was demerged from Sun Pharma as a pharma research and drug discovery company in 2007. Ernst & Young Merchant Banking Services, Inga Capital are the lead managers to the issue.

Earlier in May, the company’s board had approved the proposal to raise up to Rs 250 crore through a rights issue.

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