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Poly Medicure Launches ₹1,000 Cr QIP, Plans for Expansion and Growth

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Synopsis:

Poly Medicure launched a ₹1,000 crore QIP with shares priced at ₹1,850-₹1,880, leading to a 5.54% equity dilution. The Poly Medicure share price closed at ₹2,120, up 8.61%, reflecting strong investor confidence despite the discount.

Poly Medicure News Today

Poly Medicure Limited, a leading medical consumables company, has launched a Qualified Institutional Placement (QIP) to raise ₹1,000 crore. The move is part of the company’s strategy to fund new manufacturing facilities, pursue inorganic growth opportunities, and address general corporate expenses.

Details of the QIP

The QIP offers shares within an indicative price range of ₹1,850 to ₹1,880 each. This pricing represents a discount of approximately 11.6% compared to Poly Medicure’s share price of ₹2,120 on August 19. The QIP is expected to result in an equity dilution of 5.54% relative to the pre-issue outstanding capital.

Use of Proceeds

The capital raised through this QIP will be primarily allocated towards capital expenditure for establishing new manufacturing units. Additionally, Poly Medicure plans to use the funds to explore inorganic growth opportunities, potentially through acquisitions or strategic partnerships, and for general corporate purposes.

Promoter Lock-Up and Management

The QIP includes a promoter lock-up period of 90 days following the closing date, which is standard in such placements to prevent any immediate sell-off by promoters. IIFL Securities Limited and SBI Capital Markets Limited have been appointed as the Book Running Lead Managers (BRLMs) for this QIP, overseeing the entire process.

Poly Medicure Share Price Performance

On the day of the QIP announcement, the Poly Medicure share price surged by ₹168.05, or 8.61%, closing at ₹2,120 on the NSE. Despite the QIP’s discount, the share price performance indicates strong investor confidence in the company’s growth prospects.

Over the past 12 months, Poly Medicure shares have delivered an impressive return of 48.37%.

Key Takeaways

Poly Medicure's ₹1,000 crore QIP is a strategic move to strengthen its manufacturing capacity and pursue growth opportunities. Despite the discount offered in the QIP, the strong upward movement in the Poly Medicure share price reflects investor optimism about the company's plans.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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