Poly Medicure gains 6% on successful fund raising via QIP issue
Shares of medical equipment maker Poly Medicure rose 6 per cent to hit a new high of Rs 689 on the BSE in Friday’s intra-day trade after the company successfully raised Rs 400 crore through qualified institutional placement (QIP) route. In the past one week, the stock has rallied 16 per cent, as compared to a nearly 1 per cent decline in the S&P BSE Sensex.
“The QIP opened on February 15, 2021, and closed on February I 8, 2021,” Poly Medicure said in a regulatory filing.
On Thursday, the company’s QIP committee approved the allotment of 7.63 million equity shares to eligible qualified institutional buyers at a price of Rs 524 per equity share, including a premium of Rs 519 per share, which was at a discount of Rs 26.79 (4.86 per cent to the floor price of Rs 550.79 per share), it said.
The company proposed to utilize the net proceeds for funding suitable organic and inorganic growth opportunities, ongoing capital expenditure, other long term and short terms requirements, pre-payment and/or repayment of outstanding borrowings and general corporate purpose.
Poly Medicure is among the top five companies in the medical devices industry in India, in terms of operating income and profitability margin performance, in fiscal 2019.
The company manufactures and supplies, in India and internationally, a diverse portfolio of medical devices in the product verticals of infusion therapy, oncology, anesthesia and respiratory care, urology, gastroenterology, blood management and blood collection, surgery and wound drainage, dialysis, central venous access catheters, veterinary medical devices, and others.
The management said as an established player of significant scale, Polymed is set to benefit from the various tailwinds in the Indian market. Polymed’s strong pipeline is key to further profitably. The high brand equity and existing customer and distributor relationships are key for tapping into emerging growth opportunities, the company said in a presentation.