Torrent Pharma seeks enabling nod to raise Rs 10,500 crore

New Delhi: The Ahmedabad-based drug firm Torrent Pharma is seeking enabling approvals from its shareholders to raise Rs 10,500 crore through issue of shares and other securities to fund its growth activity.

The board of the company, at a meeting held today, has decided to obtain enabling approvals from shareholders to issue equity "including convertible bonds/debentures through qualified institutional placement (QIP) or depository receipts or any other modes for an amount not exceeding Rs 3,000 crore".

The company is also seeking enabling approval for borrowing through issue of "unsecured/secured redeemable non-convertible debentures/bonds by way of private placement for an amount not exceeding Rs 7,500 crore, subject to overall borrowing limits of Rs 10,000 crore".

"It was prudent to have requisite enabling approvals in place for meeting the fund requirements for its organic and inorganic growth, capital expenditure, working capital, refinancing the existing borrowings and other corporate purposes," the company said.

This would help the company "take quick and effective action to capitalise on opportunities, primarily those relating to inorganic growth as and when available".

The stock of Torrent Pharma was trading at Rs 1,410 on BSE at 1350 hours, down 0.59 percent from its previous close.