Morepen Labs in equity deal with Avenue Capital
Morepen Laboratories has signed an agreement with GL India Mauritius III, a subsidiary of Avenue Capital Group, for subscribing 14.99 per cent equity shares and 5 per cent warrants of the company.
By INDIATIMES NEWS NETWORK |
MUMBAI: Morepen Laboratories has signed an agreement with GL India Mauritius III, a subsidiary of Avenue Capital Group, for subscribing 14.99 per cent equity shares and 5 per cent warrants of the company.
As per the agreement, Avenue Capital will pay 10 per cent money on subscription and balance in 18 months for 3.853 crore shares of Rs 2 at premium of Rs 18 per share. The investment firm will pay Rs 27.04 crore for 5 per cent naked warrants. It will also infuse Rs 77.06 crore in Morepen.
Promoters of Morepen will investing fresh capital by subscribing to warrants which will be converted into 10 crore shares, amounting to Rs 60 crore. The total equity base of the company will go up to Rs 74.12 crore comprising of 37.06 crore shares of Rs 2 each.
Post warrant subscription, promoter stake in Morepen will be 46 per cent, GL India Mauritius will hold 14 per cent and the public holding will be 38 per cent.
The entire Rs 140 crore of fresh capital will be utilised for repayment to banks under corporate debt restructuring scheme for which a settlement has already been arrived.
As part of this settlement, the company has issued preferential capital of Rs 103 crore to the banks which will have the option to convert into equity after seven years.
Post this settlement, the company will not have any pending liabilities with banks and will have a serviceable debt of only Rs 72.39 crore.
At 12:01 pm, Morepen shares were at Rs 18.80 on BSE, up 6.82 per cent from Wednesday’s close.
As per the agreement, Avenue Capital will pay 10 per cent money on subscription and balance in 18 months for 3.853 crore shares of Rs 2 at premium of Rs 18 per share. The investment firm will pay Rs 27.04 crore for 5 per cent naked warrants. It will also infuse Rs 77.06 crore in Morepen.
Promoters of Morepen will investing fresh capital by subscribing to warrants which will be converted into 10 crore shares, amounting to Rs 60 crore. The total equity base of the company will go up to Rs 74.12 crore comprising of 37.06 crore shares of Rs 2 each.
Post warrant subscription, promoter stake in Morepen will be 46 per cent, GL India Mauritius will hold 14 per cent and the public holding will be 38 per cent.
The entire Rs 140 crore of fresh capital will be utilised for repayment to banks under corporate debt restructuring scheme for which a settlement has already been arrived.
As part of this settlement, the company has issued preferential capital of Rs 103 crore to the banks which will have the option to convert into equity after seven years.
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Post this settlement, the company will not have any pending liabilities with banks and will have a serviceable debt of only Rs 72.39 crore.
At 12:01 pm, Morepen shares were at Rs 18.80 on BSE, up 6.82 per cent from Wednesday’s close.
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