GRANULES INDIA promoters sell 5 million shares

HYDERABAD | MUMBAI | RAJKOT – In a press release submitted to the Stock Exchanges in India, Hyderabad headquartered pharma company Granules India Ltd said of having sold 5 million (50 lakh) shares to a group of reputed investors in a block deal on the stock exchanges, to mobilize about 500 million (50 crore) rupees.

In addition to it, the promoters are also monetizing personal assets worth up to another 5.5 billion (550 crore) rupees, which is expected to be completed shortly, the release read.

The funds raised through these transactions will be used to reduce promoter leverage by up to 1 billion (100 crore) rupees and which will subsequently bring down the Promoters pledged position to around 30% from current level of 54%.

This is in line with their commitment given on Q3FY19 earnings call to reduce the pledge continuously and make it pledge free within two years.

The Promoters also reduced some amount of their personal loan in the month of December 2018, which enabled the reduction of from their highest point of pledge of 60% to current level of 54%.

This step has been taken after due consultation with all sets of stakeholders, and to address the concerns related to promoter pledge.

The promoters would also like to strongly reiterate their conviction in the company’s future prospects.

Granules India has started its growth momentum from the current financial year, having witnessed 3 consecutive strong quarters with high double digit growth in profits, and is among the very few integrated pharmaceutical companies in India and fully FDA compliant.

The management is confident and aspire to continue to meet and exceed all the Company’s stated goals.

After having made the announcement of share sale and efforts of promoters to monetize selling personal assets, investors & traders seemed to have reacted positively  to the announcement, which very well reflected into the share price momentum of the company.

The share prices of the company continued trailing in green zone on positive counters on the Indian Bourses, during the trading session on Friday, as well ended on positive counters.