Shares of Panacea Biotec Ltd rose as much as 17.50 per cent intra-day, as the company said on Monday that India Resurgence Fund (IndiaRF) has announced an investment of up to $144 million in the company.
India Resurgence Fund (lndiaRF), promoted by Piramal Enterprises Ltd and Bain Capital Credit, along with its affiliates, plans to invest up to Rs 992 crore in New-Delhi based Panacea Biotec Limited.
This investment is structured by way of NCDs of up to Rs 864 crore and subscription amount of Rs 32 crore towards share warrants to be allotted on a preferential basis.
"The subscription amount represents 25% of the total amount of Rs 128 crores proposed to be raised upon issuance of equity shares against warrants as per SEBI," the filing added.
As per the filing, the investment proceeds will be used for a one-time settlement with existing lenders, general working-capital and growth requirements. Following the investment, India Resurgence Fund will own 10.4 percent stake in Panacea Biotec on a fully diluted basis.
India RF invests capital in the form of both debt and equity in distress situations in the Indian market and looks to invest in businesses that require balance sheet restructuring and engages with companies that have fundamentally strong growth prospects linked to infrastructure and consumption needs of India and competitive on cost and quality in the export markets.
After forming a gap-up chart pattern, shares of the health management company opened with a gain of at Rs 202, an 11.6 per cent jump against the previous close of Rs 181.15 on BSE. Following this, the stock rose 17.50 per cent in the early trade to touch an intra-day high of Rs 212.85.
The stock has gained after 3 days of consecutive fall. The share price of Panacea Biotec has moved above its 30 and 200-day simple moving average today.
Meanwhile, the stock closed at Rs 200.45, 19 points up or 10.65 per cent above on BSE and 21.5 points up or 11.91 per cent at Rs 200.60 on NSE. A total of 15.7 lakh shares and 2.4 lakh shares were traded on NSE and BSE, respectively.
(Edited by Rupa Burman Roy)