Morepen Laboratories will soon be listed on Luxembourg Stock Exchange with its global depository receipts getting 'fully subscribed' by European institutional investors and the company will seek to list these fresh shares in the domestic market as well.
The GDR issue, which opened on March 27, was 'fully subscribed and Morepen has become the first Indian pharmaceutical company in the recent past to garner funds and to be listed on an international bourse,' a media release from Morepen said on Monday.
The company, which raised $15.25 million through the issue of 5 million GDRs at $3.05 apiece, representing 50 million shares of face value of Rs 2, would use it for retiring high-cost debt and for business operations and R&D initiatives, it said.
It said the issue, seconded by an Indian company this year, received 'very encouraging response' from the investors, primarily by European institutional investors.
"The issue has been subscribed at a premium of over 12 per cent to the prevailing price in the domestic market," it said adding that the company would now seek listing of these fresh shares in the domestic market as well.
After the issue of 50 million fresh shares, the equity of the company would increase by Rs 10 crore (Rs 100 million) and reserves would get a boost of Rs 62.5 crore (Rs 625 million).
Morepen Laboratories closed at Rs 13 per share at BSE and at Rs 12.95 per share at NSE last Friday.
The lead manager for the GDR issue was Kaupthing Bank and Bank of New York was the listing agent as well as depository, while ICICI Bank acted as the custodian.
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