Morepen Laboratories Limited, a leading manufacturer of high-quality APIs, Home Diagnostics, Formulations and OTC products, has approved an incoming investment of Rs. 433 crore in the Extra-Ordinary General Meeting (EGM) of the company.
The members approved the issue and allotment of 58.50 million equity shares for cash to Corinth Investment Holdings AG, Switzerland Rs.41.60 per share aggregating to RS. 243.36 crores.
Shareholders also approved 50 million fully convertible warrants a promoter group company Liquid Holdings Private Limited at Rs.38 per warrant/ share aggregating up to Rs. 190 crores for cash to be converted into equity within 18 months, within the limits prescribed in SEBI (SAST) Regulations for acquisition of share/ voting rights in a financial year. The issue price of aforesaid securities is derived as per pricing formula prescribed by SEBI in SEBI (ICDR) Regulations.
This is a milestone for the Company as this approval paves the way to drive exponential growth and create value for all stakeholders. This EGM was the next step for inclusion of Corinth Group, a global private investment Group, headquartered in Switzerland, which announced and extended USD 32.50 million in Morepen Laboratories Limited, out of a total USD 100 million investment in the promoter group.
Sushil Suri, Chairman and Managing Director, Morepen Labs Ltd. said, “The investment by Corinth further bolsters our position as a market leader in Indian healthcare, it also endorses our approach in the self-diagnostic tools category along with the scale and potential of the API market. It is a testing time for life sciences and pharmaceutical companies in these challenging times and are all geared to enhance our capacities and also expand our markets”.
Sir Christopher Pissarides, Chairman of Corinth Group’s Advisory Board and Nobel Prize laureate (2010) in Economies, had said, “The investment into Morepen follows from our increased focus on emerging markets, and in particular the health and pharmaceutical industry. India is a key global market with significant growth opportunity, and we look forward to working with management fo help the business develop while catering to a rapidly growing sector.”
Speaking about the opportunities that the Indian market presents, Andreas Matsas, CEO of the Corinth Capital Fund said, “We are bullish about the Indian market and have already started the process of setting up a dedicated full-service office in Delhi, India, through a wholly owned subsidiary which will be functional in May 2021. We are actively working towards sefting up an AIF, in line with Indian regulatory requirements, to cater to the Indian market. Our Investment info Morepen Group establishes Corinth’s long-term commitment to the Indian market, — with ongoing investments of another USD 200 million in the Agri and Logistics sector undergoing due diligence.”
The Company plans to expand the medical devices business and has plans to invest heavily on creation of world class facilities with large capacities and at some stage demerge this business into a separate wholly owned subsidiary, the statement said.
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