Torrent Pharma Board Approves INR 5,000 Cr Fundraising Plan

However, the final approval is pending and is anticipated to be addressed at the upcoming annual general meeting (AGM).

Ahmedabad-based Torrent Pharmaceuticals has planned to raise INR 5,000 Cr by issuing equity shares and convertible bonds through a qualified institutional placement (QIP).

Reportedly, the drugmaker's board has approved the fundraising initiative. However, the final approval is pending and is anticipated to be addressed at the upcoming annual general meeting (AGM).

"Recommended to the members to obtain enabling approval for issuance of equity shares including convertible bonds or debentures through Qualified Institutional Placement (QIP) and or any other modes for an amount not exceeding Rs 5,000 crore in the upcoming Annual General Meeting (AGM)," the company said in a regulatory filing.

Additionally, the board recommended to the members a final dividend of INR 6 (120%) per equity share of INR 5 each. Earlier an interim dividend of INR 22 (440%) per equity share was paid during the last quarter.

Torrent's Ongoing Acquisition Pursuits

Torrent Pharma has been consistently exploring acquisition opportunities. The company has shown interest in acquiring Mumbai-based drug maker JB Pharma.

Moreover, Torrent Pharmaceuticals lined up at least $5 billion in funding to take over its rival Cipla. However, due to uncertainty among Cipla’s promoters, the deal didn't materialize.

It also entered into preliminary discussions with Apollo Global Management to obtain a loan of up to $1 billion to acquire rival company Cipla.

According to Bernstein analyst's estimates, the deal for approximately 60% of India's third-largest drugmaker could be valued at up to $7 billion, potentially making it India's largest pharmaceutical deal to date.

Founded by U N Mehta in 1959, Torrent Pharmaceuticals is an Indian pharmaceutical company headquartered in Ahmedabad. It aims to provide affordable and quality medicines to people across the globe. Currently, the company has a presence in over 50 countries worldwide.

Torrent makes branded and generic drugs. The dosage forms include tablets, capsules, and extended-release formulations. India, the US, Germany, and Brazil are among its major markets.

Torrent Pharmaceuticals on May 24 reported a 57% rise in its consolidated net profit for the March quarter at INR 449 Cr. Its revenue grew 10 % YoY to INR 2,745 Cr.

The pharma firm's earnings before interest, tax, depreciation, and amortization (EBITDA) increased 21% on-year to INR 883 Cr in the quarter under review.