Kopran may rope in strategic financial partner for recast plan

Mumbai: Domestic pharmaceutical company Kopran Ltd is weighing options to rope in a strategic financial partner as part of the financial restructuring undertaken by the company.

The company is in the process of restructuring its Rs 175-crore debt portfolio as well as mobilising finances for capital expenditure, say sources close to the development. The Kopran board will discuss the issue at the board meeting scheduled on 26 September.

The Kopran scrip has gone up by nearly 170 per cent per cent on the Bombay Stock Exchange (BSE) during the last three months. The scrip, which was quoting at Rs 24 in June, went up to Rs 67 on 23 September, a gain of Rs 43.

On the BSE, 15,88592 shares worth Rs 10,31,71,296 changed hands on 23 September. Meanwhile, on the National Stock Exchange, the volume was 16,95158 with a value of Rs 10,94,93,296.

According to market analysts, though the scrip has moved substantially, considering the current market price, the market capitalisation of the company is accounting for Rs 120 crore. The promoters of the company currently hold 32 per cent, which in absolute terms is valued at around Rs 38 crore. This means that to mobilise further funds, the promoters will have to dilute some equity.

Says Kopran executive vice-chairman Surendra Somani says: "We have undertaken a financial restructuring to restructure our debt. The board meeting on Friday will discuss the matter." He declined to give further details on financial restructuring.

The Somanis-controlled Parijat group had mobilised Rs 28 crore through a fresh rights issue for its existing shareholders. The promoters offloaded 7,150,000 equity shares of Rs 10 each for cash at a premium of Rs 30 per share, which aggregate to Rs 2,860 lakh on a rights basis.