Hyderabad-based pharmaceutical firm Natco Ltd is planning to raise up to Rs 450 crore (approximately $70.7 million) through issuing shares or convertible securities to foreign investors either through a private placement or through a QIP, as per a stock market disclosure.
In a meeting held on Friday, the board of the company approved fund raising proposal as well as proposal to raise foreign institutional investor or foreign portfolio investor investment ceiling to 49 per cent. Currently, FIIs hold 9.96 per cent stake in the company.
The company has also received approval for the merger of Natco Organics Ltd with itself.
Natco Pharma is involved in exports of both APIs and finished dosage forms. The firm has five manufacturing facilities spread across India. Its products include timed released capsules, tablets, inhalers, dry syrups, dispersible, syrups, etc.
The company manufacturers products for antibiotics, anti-malarial, analgesics, anti-pyretic, peripheral vasodilators, anti-anginal, anti-hypertensives, anti-asthmatic, tranquilisers, anti-depressants, oncologicals, anti-emetics, anti-anemic, nutritional supplements, bio-technology based drug forms and health products.
Currently, it employs 2,500 people.
Earlier this year, private equity firm CX Partners made a partial exit from the company by selling around one-fourth of its holding for around Rs 60-62 crore ($10 million) through open market transaction. Its remaining stake is now worth around Rs 175 crore.
Shares of Natco Pharma closed at Rs 2,295.40 each, down 0.13 per cent on BSE in a strong Mumbai market on Friday.