Shares of API manufacturer Solara Active Pharma Sciences Ltd. declined 2 percent on Thursday after the company announced a Rs 450 crore rights issue to raise capital from shareholders.

Share Market Live

NSE

The company informed the bourses that its board of directors in a meeting on Wednesday approved a proposal to raise up to Rs 450 crore by way of a rights issue to the eligible equity shareholders of the company.

The record date will be determined and notified subsequently, it stated, adding that the detailed terms in relation to the rights issue such as the issue price, rights entitlement ratio, record date, timing and terms of payment will be determined in due course.

The company also announced that its Managing Director Jitesh Devendra has resigned from his post.

Poorvank Purohit has been elevated as Managing Director and Chief Executive Officer of the Company, effective from July 5. The appointment is subject to the approval of shareholders of the Company, which shall be sought separately.

The board also approved the appointment of Kartheek Chintalapati Raju as Non-Executive (Non-Independent) Director of the company with effect from July 5.

Solara Active Pharma Sciences Ltd is an active pharmaceutical ingredients maker. It has four manufacturing facilities and two research and development centres.

The company reported revenue of Rs 1,466 crore for financial year 2023, a growth of 14 percent year-on-year. Its gross margin year as a whole was at 46 percent, and operating profits or EBITDA at Rs 226.8 crore, with a 15.5 percent margin in financial year 2023. Its EBITDA rose 63 percent compared to Rs 150.7 crore in financial year 2022.

Shares of Solara Active Pharma are trading 2.3 percent lower at Rs 388.70. The stock is down 11 percent on a year-to-date basis.