Veteran Investors Madhusudan Kela & Prashant Jain Bet Big: Wockhardt's QIP Attracts Rs 480 Crore

Veteran investors Madhusudan Kela and Prashant Jain have thrown their weight behind Wockhardt Ltd, as part of the institutions investing in the Qualified Institutional Placement (QIP) of the company, as per an exchange filing.

The Habil Khorakiwala-led drugmaker sealed the institutional share sale on Tuesday, raising a substantial Rs 480 crore. The company greenlit the issuance of 92.85 lakh equity shares at Rs 517 per share, marking a 5% discount to the QIP floor price of Rs 544.02 per share.

Among the notable funds securing significant shares in the QIP are 3P India Equity Fund, managed by Prashant Jain, a former HDFC Mutual Fund veteran, and Madhusudan Kela's Cohesion MK Best Ideas sub-trust. Additionally, institutions like ICICI Prudential, Mirae Asset Management, Tata Indian Opportunities Fund, Invesco India Smallcap Fund, Gagandeep Credit Capital, and Subhkam Ventures are among the beneficiaries of shares issued within the QIP.

Following the QIP, Wockhardt's paid-up equity share capital will see a rise to Rs 76.7 crore, comprising 15.34 crore equity shares of face value Rs 5 each, from the previous Rs 72.05 crore, which consisted of Rs 14.41 crore shares of similar face value.

This move comes after Wockhardt's board had sought approval for a related party transaction to secure loans worth Rs 1,600 crore from Khorakiwala Holdings and Investments Private Ltd. The proposal, however, faced rejection by the company's shareholders during its Annual General Meeting (AGM) in August. Despite this setback, shareholders empowered the company's board to raise up to Rs 1,600 crore through a QIP or by issuing other eligible securities.

On the trading front, Wockhardt's shares surged, hitting a 5% upper circuit at Rs 557.85 per share as of 12:30 pm on the National Stock Exchange (NSE). Notably, the stock has witnessed a remarkable gain of over 250% in the past year.

The pharmaceutical industry, renowned for its resilience and innovation, continues to attract investor attention amidst the ongoing global health challenges. Wockhardt, with its strategic moves and strong backing from seasoned investors, appears poised to capitalize on emerging opportunities in the healthcare landscape.

With the infusion of fresh capital and the backing of prominent investment firms, Wockhardt aims to bolster its research and development endeavours, enhance its product portfolio, and potentially explore avenues for expansion, both domestically and internationally.