The rights issue of pharmaceuticals giant Piramal Pharma Ltd to raise Rs 1,050 crore was oversubscribed by 1.27 times on Thursday (August 17), the closing day.

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The price of the rights issue has been fixed at Rs 81 per share. Around 13 crore shares would be issued to existing shareholders for a total amount of Rs 1,050 crore.

The board committee had fixed the entitlement ratio for the rights issue at 5:46, which means eligible equity shareholders will receive five rights shares for every 46 ordinary shares they hold as of the record date.

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Assuming full subscription of the rights issue, the company’s outstanding fully-paid equity shares would reach 132.3 crore compared to 119.3 crore shares prior to the issue.

Proceeds from the rights issue will be used to reduce debt as well as for general corporate purposes. Piramal Pharma has a debt of around Rs 4,800 crore on its books.

Piramal Pharma provides end-to-end pharma services to customers and a portfolio of differentiated pharma products across a domestic and global distribution network.

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It operates under three business verticals — Piramal Pharma Solutions, an integrated contract development and manufacturing organisation (CDMO); Piramal Critical Care, a complex hospital generics (CHG) business; and India consumer healthcare (ICH) business, selling well-known over-the-counter brands such as Little's, Lacto Calamine and I-Pill.

Shares of Piramal Pharma Ltd ended at Rs 99.55, down by Rs 1.60, or 1.58 percent on the BSE.

First Published:Aug 17, 2023 10:28 PM IST