Solara Active Pharma Sciences, a Chennai-based drug firm, announced on Wednesday that its board of directors has given the green light to a rights issue aimed at raising up to Rs 450 crore. In a regulatory filing, the company stated that it plans to offer and issue equity shares with a face value of Rs 10 each to eligible equity shareholders, for a total amount not exceeding Rs 450 crore, including premium.
The funds raised through the rights issue will be utilized to support the company’s expansion plans and strengthen its operations. Solara Active Pharma Sciences operates several facilities across different states in India, including Tamil Nadu, Maharashtra, and Karnataka. These facilities are responsible for manufacturing and rolling out a diverse range of pharmaceutical products.
A rights issue is a method through which a company can raise additional capital by offering existing shareholders the right to purchase additional shares at a discounted price. This approach provides an opportunity for shareholders to maintain their ownership percentage in the company while also contributing to its growth.
Solara Active Pharma Sciences’ decision to opt for a rights issue reflects its confidence in the support of its existing shareholders and their commitment to the company’s future prospects. By offering equity shares at a discounted price, the company aims to incentivize shareholders to participate in the rights issue and provide the necessary capital to fund its expansion plans.
The pharmaceutical industry in India has been witnessing significant growth, driven by increasing demand for affordable healthcare and the country’s position as a global manufacturing hub for generic drugs. Solara Active Pharma Sciences, with its established presence and manufacturing capabilities, is well-positioned to capitalize on this growth and further strengthen its market position.
The proceeds from the rights issue will likely be utilized to enhance the company’s manufacturing capacities, invest in research and development initiatives, and explore strategic collaborations and acquisitions. These steps will enable Solara Active Pharma Sciences to expand its product portfolio, enter new therapeutic segments, and potentially increase its market share.
Furthermore, the funds raised through the rights issue will support the company’s efforts to comply with regulatory requirements and quality standards, both domestically and internationally. As the pharmaceutical industry becomes increasingly regulated, companies must invest in ensuring compliance with evolving guidelines to maintain their competitiveness and access global markets.
Solara Active Pharma Sciences’ decision to conduct a rights issue comes at a time when the company is experiencing growth momentum and aims to capitalize on emerging opportunities. The pharmaceutical sector’s resilience during the COVID-19 pandemic, coupled with increasing healthcare spending and a favorable regulatory environment, provides a conducive backdrop for the company’s expansion plans.
Solara Active Pharma Sciences’ board approval of the Rs 450 crore rights issue reflects the company’s commitment to its growth strategy. By raising additional capital through this offering, the company aims to strengthen its operations, expand its product portfolio, and leverage emerging opportunities in the Indian pharmaceutical industry. With the support of its shareholders and a focus on compliance and quality, Solara Active Pharma Sciences is poised for further success in the evolving healthcare landscape.
