Glenmark jumps to top gainer
Glenmark has been consistently hitting new highs; it hit a new high at Rs.940 on 15th April and today too, though not on a new high, till mid-morning, it has been the top gainer on the BSE. The stock is up 5% at Rs.906.95 with an intra day high at Rs.910.
The reason for today’s rise – there were two. Firstly the company’s Board on Friday announced that it had decided to raise Rs.1.08 crore shares of Re.1 each for cash, issuing it to Temasek Holding, Singapore Govt’s investment arm, on a preferential basis. This is being issued at a price of Rs.875/share to raise Rs.945 crore. The money raised is to be used to retire major chunk of its debt, which is expected to improve margins due to reduction in interest outgo.
Secondly, foreign brokerage firm, Macqauire put out a report maintaining its ‘outperform’ rating on the stock, with target price of Rs.1400.