Evonile Pharma plans Rs 88.48 crore rights issue for loan

Evonile Pharma Limited plans to raise up to Rs 88.48 crore through a rights issue, with Rs 80 crore of net proceeds proposed for repayment or prepayment of an ICICI Bank loan drawn on September 5, 2026 for a cardiology-medicine brand acquisition. The issue comprises up to 10,287,832 partly paid-up equity shares at Rs 860 each.

What is Evonile Pharma raising through the rights issue?

Evonile Pharma is proposing gross proceeds of up to Rs 88.48 crore through up to 10,287,832 Rights Equity Shares priced at Rs 860 each, including a premium of Rs 855 over the Rs 5 face value. Its board authorised the issue on October 8, 2026, and the Rights Issue Committee approved the terms on November 4, 2026.

Investors will pay Rs 645 per Rights Equity Share on application, representing 75% of the issue price. Evonile Pharma intends to collect the remaining Rs 215 per share, or 25%, through one First and Final Call, the timing and terms of which will be determined by the board. The rights shares will be partly paid-up at allotment.

The company had 24,690,797 fully paid-up equity shares before the issue. Assuming full subscription, allotment and receipt of all call money, issued share capital would rise to 34,978,629 fully paid-up equity shares, while its authorised share capital is 64,000,000 shares. Promoters and promoter-group members have said they intend to subscribe to their entitlements and may apply for unsubscribed shares, subject to a maximum aggregate holding of 74%.

How will Evonile Pharma use the rights-issue proceeds?

Evonile Pharma expects net proceeds of Rs 87.94 crore after estimated issue expenses of Rs 53.50 lakh. It proposes to allocate Rs 80 crore to repayment or prepayment of identified borrowings, including accrued interest and applicable penalties, while up to Rs 7.94 crore is designated for general corporate purposes.

At the application stage, the company expects to receive 75% of gross proceeds and estimates net proceeds of Rs 65.82 crore. It proposes to deploy Rs 60 crore toward borrowings and Rs 5.82 crore for general corporate purposes in Financial Year 2027, with the remaining Rs 22.12 crore estimated for deployment after the First and Final Call.

Evonile Pharma proposes to deploy the full net proceeds in Financial Year 2027. However, it says the timetable and funding requirements are based on management estimates and have not been independently appraised by a bank, financial institution or agency; delays in call-money receipt or changes in business requirements could defer deployment to later financial years.

Which ICICI Bank loan will Evonile Pharma repay?

Evonile Pharma has identified an Rs 80 crore corporate secured rupee term-loan facility from ICICI Bank Limited for potential repayment or prepayment. The facility was sanctioned through an August 21, 2026 credit arrangement letter and an August 29, 2026 loan agreement, and was fully disbursed on September 5, 2026 to acquire a brand in cardiology medicine.

The facility consists of Rs 30 crore of Rupee Term Loan 1, or RTL1, and Rs 50 crore of Rupee Term Loan 2, or RTL2. Both amounts were outstanding as of September 30, 2026, carried interest of 8.40% a year, and are secured by a first charge on current assets and the acquired brand, an intangible asset.

RTL1 has a 72-month tenor from first disbursement and requires 20 equal quarterly instalments after a 12-month moratorium. RTL2 has a 12-month tenor with a single bullet repayment. The disclosed prepayment charge is 0.25% a year, although Evonile Pharma says no charge applies when prepayment is made within 12 months of the first drawdown under the financing arrangements.

What would the loan repayment mean for Evonile Pharma?

Evonile Pharma says repayment of the Rs 80 crore facility is intended to reduce outstanding indebtedness, cash outflows and pressure on working capital. Management also says it expects repayment to support its debt-equity ratio, liquidity and use of internal accruals for business growth, but these are expected effects rather than reported outcomes.

The facility was fully drawn in September 2026, and Evonile Pharma reported no delays, defaults, rescheduling or restructuring of the borrowing. The company also said it had no bridge loans from banks or financial institutions proposed to be repaid from the rights-issue proceeds.

The issue is not underwritten and requires minimum subscription of at least 90% of the shares offered because one object is repayment of a loan taken for the cardiology-brand acquisition. Promoters and promoter-group members may subscribe to additional unsubscribed shares provided their combined holding remains at or below 74% and public-shareholding requirements are met.

How will Evonile Pharma monitor use of the money?

Evonile Pharma has appointed CARE Ratings Limited as monitoring agency to oversee utilisation of gross proceeds, including the allocation for general corporate purposes. The company will place gross proceeds in a separate bank account, and CARE Ratings reports will go to the board until 100% of the gross proceeds have been utilised.

The company must disclose use and interim use of gross proceeds in its balance sheet for the required reporting periods. It will also make quarterly disclosures to the Audit Committee and stock exchange on proceeds use, any deviation from stated objects and category-wise variations in actual utilisation.

Funds pending use will be deposited with scheduled commercial banks. Evonile Pharma said there are no material existing or anticipated transactions involving the net proceeds with promoters, promoter-group members, directors, key managerial personnel or senior management, and no material regulatory approvals were pending for the stated objects as of the offer document date.

Conclusion

Evonile Pharma’s proposed Rs 88.48 crore rights issue is primarily an equity refinancing of the Rs 80 crore ICICI Bank borrowing used to acquire a cardiology-medicine brand. After estimated expenses of Rs 53.50 lakh, the company proposes Rs 7.94 crore of net proceeds for general corporate purposes, leaving debt repayment as the principal disclosed use.

The next development is the First and Final Call, which is expected to provide the remaining Rs 22.12 crore for the planned Financial Year 2027 deployment. Investors can also monitor quarterly utilisation disclosures, CARE Ratings reports and any board-approved changes to the timing, quantum or use of call-money proceeds.