April 29, 2021 10:22 pm | Updated 10:22 pm IST - MUMBAI

Swiss firm Corinth to invest $100 mn in Morepen

Morepen Group has announced an investment of $100 million (₹750 crore) from private investment entity Corinth Group of Switzerland, out of which $32.50 million will come to Morepen Laboratories Ltd.

Following shareholder and regulatory approvals, Corinth would be allotted 58.50 million new equity shares on a preferential basis. This shareholding would equate to 9.41% equity stake in the company.

As per board approval, the promoter group will be allotted 50 million fresh equity shares at a price determined by SEBI pricing formula for preferential issuances, in lieu of the 98.50 million unsubscribed warrants issued in the last financial year which lapsed due to technical reasons.

“While the new allotment would be at ₹38 per share, which will be 52% higher than the earlier price of ₹25 per for each warrant. After subscription of all the warrants, the promoter’s stake in the company would go up to 44.28%, from 34.54%, on a fully diluted basis,” the company said in a filing.

Accordingly, the total fund infusion in Morepen Laboratories Ltd., including investor funds and promoter’s equity, would be ₹565 crore. The funds would be used for expansion of the company’s various businesses including API and medical diagnostics.

“The Rs 750-crore investment by Corinth in the Morepen Group affirms our leadership position in API, point of care diagnostics & OTC and the faith global investors have in our growth potential and future,” said Sushil Suri, CMD, Morepen Laboratories Ltd.

Sir Christopher Pissarides, chairman, Corinth Group's Advisory Board and Nobel Prize laureate in Economics, 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 to help the business develop while catering to a rapidly growing sector.”

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