WOCKHARDT RIGHT ISSUE
Wockhardt’s board approved a Right issue on 6th January, 2022, the record date for the same was fixed as 9th March,2022 in the meeting held on 3rd March, 2022.
Following are the points to be considered :
Total size of Right issue : ₹748 crore (3.32 crore shares)
Right entitlement ratio : 3:10
Issue Opening date : 15th March, 2022
Issue Closing date : 22nd March, 2022
Issue price : ₹225
Wockhardt’s rights issue objective is to meet financing needs of the company for repayment of subordinated debt, financing research and development initiatives and for general corporate purposes. However because additional 3.33 crore fully paid-up equity shares are issued to the market, company’s net profit spreads over a large number of shares leading to decrease in EPS (Wockhards’s reported EPS for FY21 down by 23% post dilution). This is likely to drag stock prices down.
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