Bangalore-headquartered SeQuent Scientific is looking to raise as much as Rs 400 crore (around $66.6 million) through various means, including Qualified Institutional Placement or overseas public issue of convertible bonds or shares, according to a stock market disclosure.
The custom research and manufacturing services provider has also raised the foreign institutional investor shareholding ceiling in the equity share capital of the company to 49 per cent.
The firm did not say for what purpose it plans to raise funds but SeQuent’s CEO Manish Gupta had recently told VCCircle that the company is looking for potential acquisition targets in India and overseas. The firm is mulling to look at these acquisitions in both core areas veterinary (API and formulation) and human API.
This is part of the expansion strategy of the company where it is targeting its veterinary business to grow almost four times to Rs 1,000 crore in three to four years.
Last month it also entered into a definite agreement to acquire the manufacturing assets and business of Arvee Synthesis Private Ltd for an undisclosed amount, to build its human Active Pharmaceutical Ingredient (API) business.
In FY14, revenue of the company climbed 40 per cent to Rs 455 crore but losses mounted to Rs 110 crore, due to one-time expenses related to its decision to exit Penems project and a few overseas units.
SeQuent Scientific is manufacturing and exporting human and veterinary formulations that belong to anthelmintic and anti-parasitic segment. The company also exports its products to Europe, South America, Australia, Asia and Africa.
Earlier this year, the company sold its specialty chemical business to South Korea-based Songwon Industrial Group for an undisclosed amount.
It also formed a joint venture with Shasun Pharmaceuticals Ltd to launch its veterinary business under Alivira Animal Health Ltd where SeQuent holds around 73 per cent and the rest is owned by Shasun. Later Ascent Capital picked minority stake in the company for Rs 120 crore. Further, promoters of SeQuent have also been investing in the company.
Shares of the company were quoting at Rs 386.10 per share, up 4.99 per cent to hit the upper circuit for the day in mid-day trades on the BSE in a weak Mumbai market on Thursday.
(Edited by Joby Puthuparampil Johnson)