Wockhardt stock rises over 2% after company fixes price for rights issue

Shares of Wockhardt rose over 2 per cent in an otherwise weak market today after the pharmaceuticals firm fixed the issue price for its rights issue. The firm which plans to raise Rs 748 crore from the share sale fixed the rights issue price at Rs 225 per share.

Wockhardt stock touched an intraday high of Rs 348, rising 2.05 per cent on BSE. The stock trades higher than 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages.

The stock has lost 16.8 per cent since the beginning of this year and fallen 31 per cent in one year. Total 0.26 lakh shares of the firm changed hands amounting to a turnover of Rs 90.27 crore on BSE.  

Market cap of the firm rose to Rs 3,812 crore on BSE. The share hit a 52-week high of Rs 804 on May 26, 2021 and a 52-week low of Rs 326.25 on February 24, 2022.

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The capital raising committee of the company's board decided to approve the issue of 3.33 crore fully paid-up equity shares, aggregating to a little over Rs 748 crore.

The issue will open on March 15 and close on March 22, 2022. In January this year, Wockhardt's board had approved raising of up to Rs 1,000 crore through a rights issue to its existing shareholders.

The objective of the issue is to meet financing needs of the company for repayment of subordinated debt, financing research and development initiatives and for general corporate purposes, it said.

A rights issue is sale of shares to the existing shareholders of a company at a discounted price The number of additional shares that can be bought depends on the existing holdings of the shareowners.