Cipla raises $170 million from first-ever GDR issue

Inidan drug maker prices deal at low end of tight range in wake of 63% share price surge this year.
IndiaÆs second largest drug maker in terms of sales, Cipla Ltd, has raised $170 million from its first ever sale of Global Depositary Receipts. The CLSA and Kotak Mahindra led deal is said to have met with reasonable demand despite a 63% surge in the share price already this year.

The sharp share price spike is also said to have caused price sensitivity, which resulted in a tight marketing range and small order book. The GDRs were sold to 14 accounts, of which six already held shares in the company and wanted to prevent dilution. At the final size the order book was 1.25 times covered, according to a source familiar with the deal....
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