Morepen Labs successfully raises Rs.200 crore through QIP

New Delhi: Morepen Laboratories Limited  is pleased to announce the successful completion of a Qualified Institutional Placement (QIP) worth Rs. 200 hundred million. This strategic decision highlights Morepen's dedication to speeding up growth, boosting institutional involvement, expanding market share, and enhancing its financial standing as it aims to strengthen its position as a leader in the Medical Devices and APIs industry.

There were bids of Rs. 1.68 times the subscription amount for the issue. 335 crores compared to the Rs. 200 crores of investment was made, showcasing the high level of trust from institutional investors. Bank of America Securities Europe (BOFA), Samsung India, Citigroup, Societe Generale, Nomura, BNP Paribas, Morgan Stanley, and Eminence are among the top investors globally who have joined hands with Morepen, leading to a bright future ahead. Motilal Oswal Investment Advisors Limited served as the lead manager for the issue.

Mr. Sushil Suri, Chairman and Managing Director of Morepen Laboratories, expressed gratitude to shareholders and stakeholders, especially institutional investors, for their ongoing support. He highlighted the importance of the recent fund raise through QIP in the company's journey of creating long-term value. The company's exceptional leadership team and distinctive business model will continue to drive Revenue and EBITDA growth, ultimately benefiting stakeholders such as investors in the long run. Receiving equity capital will enable us to improve manufacturing, expand into new markets, and increase our presence worldwide, solidifying our position as a leading provider of Home Medical Devices and a trusted partner in the global pharmaceutical industry.
Shareholders approved this QIP issue at an extraordinary general meeting held on March 18, 2024. The company has released 36.785 million company shares with a face value of Rs. 2.00 for Rs. 54.37 per share of stock, which includes a premium of Rs. 52.37 per share as per SEBI ICDR Regulations.

The company has maintained a steady growth rate of 19.6 pc CAGR solely through strong internal earnings and has emphasized on maximizing revenue and EBITDA margins. Now, the extra money raised amounting to Rs. Raising 200 crores through this QIP will speed up growth and aid in expanding capacities and integrating backward, solidifying the company's leading position in Glucometers and BP Monitors markets catering to consumers directly.

In the API sector, Morepen has established a specialized position for itself in six products where it holds a leading position and has recently expanded its capacities to meet the demand. Growing market need for its primary products. By raising funds through the QIP, the company will invest more money in capital expenditures to create new capacities for the molecules it has developed through extensive research and development.

The company has shown consistent strong performance each year by investing strategically and expanding into new markets to drive growth. The company generated a Gross Revenue of Rs. 1704 crore, earnings before interest, taxes, depreciation, and amortization of Rs. Net income of Rs. 172.60 crores and profit after tax of Rs. In FY24, the company achieved a Gross Revenue of Rs. 96.62, showing growth rates of 20 pc  in revenue, 101 pc in EBITDA, and 150 pc in PAT compared to FY23. 1424 crores, with an EBITDA amounting to Rs. 85.67 crores, and profit after tax amounting to Rs. 38.68 crore units. The management's strong emphasis on increasing the company's market share continues to be the main factor behind positive revenue results.