Piramal Pharma has opened its rights issue today, August 9, 2023. The issue price is ₹750 per share. The company is looking to raise ₹5,000 crore through the issue.
The rights issue is open to all shareholders of Piramal Pharma who held shares on the record date of August 2, 2023. Shareholders can apply for a maximum of 15 times the number of shares they held on the record date. The shares will be allotted on a proportionate basis. The shares are expected to be listed on the NSE and BSE on October 19, 2023.
Piramal Pharma rights issue: Entitlement ratio is 5:46
The entitlement ratio for the Piramal Pharma rights issue is 5:46. This means that for every 5 shares held by an eligible shareholder, they will be entitled to 1 new share at the issue price of ₹750 per share.
For example, if an investor holds 100 shares of Piramal Pharma on the record date, they will be entitled to 18 new shares at the issue price of ₹750 per share. The investor will need to pay ₹13,500 (18 * 750) to apply for the new shares.
Piramal Pharma rights issue: Subscription period is from August 9 to August 17
The subscription period for the Piramal Pharma rights issue is from August 9 to August 17, 2023. Eligible shareholders can apply for the issue through their respective stockbrokers.
Piramal Pharma rights issue: GMP is ₹820 per share
The GMP (grey market premium) for the Piramal Pharma rights issue is ₹820 per share. This means that the shares are trading in the grey market at a premium of ₹820 over the issue price of ₹750 per share.
The GMP is an indication of the demand for the shares in the secondary market. The higher the GMP, the more demand there is for the shares.
Analysts positive on Piramal Pharma rights issue
Analysts have given a positive outlook on the Piramal Pharma rights issue. They believe that the company is well-positioned to grow in the coming years and that the issue is a good opportunity for investors to participate in its growth.
Citigroup has given a Buy rating on the Piramal Pharma rights issue with a target price of ₹900 per share. The brokerage firm believes that the company is well-positioned to benefit from the growth of the Indian pharma market.
Morgan Stanley has also given a Buy rating on the Piramal Pharma rights issue with a target price of ₹875 per share. The brokerage firm believes that the company has a strong pipeline of products and is well-positioned to grow in the coming years.
Should you invest in the Piramal Pharma rights issue?
The Piramal Pharma rights issue is a good opportunity for investors who are looking to participate in the growth of the Indian pharma sector. The company has a strong track record and is well-positioned to grow in the coming years. The issue price is also attractive and the GMP is indicating strong demand for the shares.
However, it is important to do your own research before making any investment decisions. Consider your financial situation and risk tolerance before investing in the Piramal Pharma rights issue.