New Delhi-based Morepen Group on Wednesday said that it has secured a $100-million (about ₹750 crore) investment from Switzerland-based Corinth Group, a global private investment group. Of this, as much as $32.5 million is proposed to be directly invested in the parent company Morepen Labs and the balance $67.5 million will get invested in the promoter group companies, it said in a regulatory filing.
Sushil Suri, Chairman and Managing Director, Morepen Labs told BusinessLine that the company is also looking to hive off its diagnostic business, Dr Morepen, into a separate subsidiary in view of the increase in demand for diagnostic tools.
IPO plans
“We expect MNCs and international players to invest and in the next 3-5 years, we will come with an IPO for our Dr Morepen business,” Suri said.
Meanwhile, the Morepen Labs’ board has approved the $32.5 million investment from Corinth Group.
Following shareholders and regulatory approval, Corinth Group would be allotted with 58.5 million shares on a preferential basis, taking a 9.41 percent stake in Morepen Labs.
The board also approved allotment of 50 million fresh equity shares to the promoter group, at a price of ₹38 per share. This is being done in lieu of the 98.5 million unsubscribed warrants issued in the last financial year which lapsed due to technical reasons.
The firm said that the funds will be used for the expansion of its R&D facilities, setting up of new API plant, establishing a “world-class facility” for finished dosages as per USFDA standards, etc.