Alembic Pharma to raise Rs 1000 crore via QIP issue of equity shares
New Delhi: Gujarat-based drug firm, Alembic Pharmaceuticals, on Monday said its board has shown a green signal to raise up to Rs 1,000 crore through a Qualified Institutions Placement (QIP).
The board, at its meeting held on Monday, has accorded its approval to raise up to Rs 1,000 crore through a QIP issue of equity shares, Alembic Pharmaceuticals said in a regulatory filing.
Further, the board has delegated its authority to a fund-raising committee which shall be authorized to take decisions with respect to the issue, it added.
As per a recent media report in Economic Times, the Gujarat-based drugmaker looks to cut debt and expand businesses amid the Covid-19 pandemic, which has put pharma and life-sciences companies on top of investors radar. The proceeds from the qualified institutional placement (QIP) will be used to fund its generics business and repay high-cost debt.
JM Financial and Monarch Capital are helping the firm raise funds, three people aware of the fundraising plan told ET.
On May 22, the company's board had passed an enabling resolution to raise up to Rs 1,200 crore by issue of securities.
Alembic Pharmaceuticals has three research and development (R&D) facilities -- two in India's Vadodara and Hyderabad, and one in the US.
According to its website, the company has six formulations and three active pharmaceutical ingredients (API) manufacturing facilities. Five formulation production units in Gujarat are located near Vadodara, three at Panelav, and two at Karakhadi. This apart, one facility is located in Sikkim.
The company currently manufactures general oral solids in Panelav and is in the process of putting up oncology oral solids and oncology injectable facilities at the same location. Besides, two API manufacturing plants located at Panelav and one at Karakhadi. It has a strong presence in the anti-diabetic, cardiology, nephrology, gynaecology, cough and cold and anti-infectives segments.