Abstract:
Bafna Pharmaceuticals Ltd, offered equity shares to the public for achieving several objectives. The company, which produces pharmaceutical products was listed on the BSE or Bombay Stock Exchange for trading its shares. The Issue structure, total number of shares, their face value as well as cash price are given in the write up below.
Bafna Pharmaceuticals Ltd., was established in the year 1995 on the 28th of March as per Companies Act, 1956. The company manufactures pharmaceuticals preparations of Non Betalactum as well as Betalactum products. The various products prepared under this banner trade in the markets of Ukraine, Sri Lanka and Ghana.
Components of the Issue:
Bafna Pharmaceuticals Ltd had introduced equity shares for the public. The structure of the Issue or the IPO (initial public offer) was as follows:
The company issued a total number of 64,00,000 (size of the Issue) equity shares to the people. The face value of the share was Rs10. The total number of shares amounted to Rs.2560.00 lacs. The "post issue" paid up capital of the equity shares launched by Bafna Pharmaceuticals Ltd was 40.05%. The price per equity share was Rs.40.
Outstanding equity shares:
The total number of outstanding equity shares before the Issue was launched were 95,81,129 equity shares whereas total number of outstanding shares after the Issue was launched were 1,59,81,129 equity shares.
Listing of the equity shares(IPO) of Bafna Pharmaceuticals Ltd:
The initial public offer or the IPO of the Bafna Pharmaceuticals Ltd was listed on the BSE or the Bombay Stock Exchange.
Aim of issuing equity shares:
The company had introduced the IPO in the markets with some objectives in mind. Some of the prominent ones are as follows:
- For the purpose of enhancing its brand image as well as brand value for "brand building" in the national as well as the global markets.
- For the repayment of debts.
- For bearing expenses related to public issues and for being able to trade on the stock exchange.
- So that prerequisites of the working capital could be met.
- For setting up an R&D center at Grantlyon( for making entry into the regulated market).
- For partially funding the approval of MHRA ( Medicines And Healthcare products Regulatory Agency) of setting up the Grantlyon center.