Poly Medicure Initiates QIP to Secure Rs.1,000 Crore in Funding

Poly Medicure, an Indian manufacturer and exporter of plastic medical disposables and surgical devices, has launched a Qualified Institutional Placement (QIP) to raise Rs.1,000 crore, aimed at funding a number of initiatives, including capital expenditure and potential acquisitions going ahead this year.

Details of the QIP

 The QIP was opened on Monday with a floor price set at Rs.1,880.68 per share. The final issue price will be determined in consultation with the Book Running Lead Managers, IIFL Securities Limited and SBI Capital Markets Limited. As per the reports, the company has the option to offer a discount of up to 5% on the floor price.

Equity Dilution & Price Range

The shares are being offered within a price range of Rs.1,850 to Rs.1,880 each, reflecting a discount of approximately 11.6% from the stock’s recent closing price of Rs.2,126.35 on the BSE. This QIP is potentially expected to result in an equity dilution of 5.54% relative to the company’s pre-issue outstanding capital.

Before this QIP, a public shareholder divested a 2.37% stake in Poly Medicure, amounting to Rs.443.8 crore through an open market transaction. Lighthouse Advisors India, via its affiliate Lighthouse India III Equity Investors, sold 22.76 lakh shares at Rs.1,950.03 per share.

Use of Proceeds

Poly Medicure plans to allocate the funds raised through this QIP towards capital expenditure for new manufacturing facilities, inorganic growth opportunities, and general corporate requirements. Additionally, the QIP includes a 90-day promoter lock-up period following the issue’s closing date.

Conclusion: In conclusion, Poly Medicure raising Rs.1,000 crore through this QIP shows its plans on expansion and growth. With planned investments in new facilities and potential acquisitions, the company is positioning itself for the best in the medical devices sector.