Prism Medico And Pharmacy To Consider Fund Raising Via Preferential Issue

Prism Medico and Pharmacy Ltd has informed exchanges that its board of directors will convene to evaluate fund raising via a preferential issue of shares. The decision reflects the company’s strategy to bolster financial resources and support ongoing business expansion.  

The preferential issue route allows the company to raise capital by issuing shares to select investors, including promoters, institutions, or strategic partners. This method is often used to strengthen liquidity, fund growth initiatives, and improve balance sheet health.  

Key highlights from the update include  

• Board of Prism Medico and Pharmacy to consider fund raising via preferential issue  
• Move aimed at enhancing capital reserves and liquidity  
• Funds expected to support expansion and growth initiatives  
• Disclosure made under SEBI regulations to stock exchanges  
• Preferential issue route allows targeted capital infusion from select investors  

Analysts note that preferential issues are a common mechanism for mid-sized companies to secure funding without resorting to debt-heavy structures. For Prism Medico and Pharmacy, the proposed fund raising could provide financial flexibility and reinforce investor confidence in its long-term growth trajectory.  

Sources: BSE Corporate Filings, Economic Times, Business Standard