Express Pharma

Suven Life Sciences raises Rs 200 crore through QIP

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The company accordingly will issue 1,04,53,690 equity shares of face value of Re 1 per equity share at a price of Rs 191.32 including a premium of Rs 190.32 per share

Suven Life Sciences has concluded its Rs 200 crore fund raising exercise through the Qualified Institutions Placement (QIP) process. Anand Rathi Advisors acted as the sole global co-ordinator and book running lead manager for this QIP

The transaction saw participation by some highly reputed investors in India. The company accordingly will issue 1,04,53,690 equity shares of face value of Re 1 per equity share at a price of Rs 191.32 including a premium of Rs 190.32 per share. Post issue the promoters holding will be in excess of 59 per cent as against 64.76 per cent on September 30, 2014.

According to the company release, the response to this QIP issue is a testimony to Suven’s growth-oriented financial performance and confidence of the investors in Suven’s unique business model in CRAMS and NCE development.

Speaking on the occasion, Venkat Jasti, Chairman, Suven Life Sciences said, “This is our public raise after 10 years since our preferential issue during 2004. The Anand Rathi team and we were able to successfully communicate our unique business model which has been validated and acknowledged by the fantastic response that we have received. One of the strategic objectives of this deal was to get the right set of long-term investors of high credibility and the willingness to back the long-term business plan of our company. I believe the Anand Rathi team has delivered on that objective. We are now set to enter into a new and more exciting phase of growth.”

On the deal closure, Amit Rathi, Managing Director, Anand Rathi Advisors said, “The response to this transaction, including the pedigree of investors, has been fantastic. This sets up the company to catapult itself into the next exciting phase of growth.”

The funds raised will be effectively deployed to fund the clinical development programme, capital expenditure and for general corporate purposes.

EP News BureauMumbai

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