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Sun Pharma to raise up to $2B, may use it for M&As

15 September, 2014

Sun Pharmaceutical Industries Ltd, the country’s most valued pharma company, is aiming to raise as much as $2 billion in one or more tranches through issue of securities and has sought a shareholders nod for the same, as per a stock market disclosure.

The firm did not disclose the purpose of the proposed fundraising nor give a timeline but said it may use one or other means including QIP besides other non convertible debt instruments or convertible securities.

This has triggered rumours that the firm is preparing for one or more large-size acquisitions.

After a pause in 2013, Sun Pharma announced a mega deal proposing to buy Ranbaxy in India. The proposed all-stock transaction is currently awaiting regulatory approvals but won’t involve cash outgo.

In April, it had announced its plan to acquire rival Ranbaxy from its Japanese parent Daiichi Sankyo, in an all-stock deal valued at $3.2 billion. Besides, the deal involves a debt component of $800 million. The acquisition would also provide Sun Pharma a global manufacturing base with as many as 47 production facilities across the US, Latin America, Europe and India.

For the year ending March 2014, overall revenues of the company were $2.7 billion, of which US contributed $1.6 billion. In India, the company is a leader in niche therapy areas of psychiatry, neurology, cardiology, nephrology, gastroenterology, orthopedics and ophthalmology. It has strong skills in product development, process chemistry and manufacturing of complex dosage forms.

Recently, Sun Pharma acquired US-based Pharmalucence Inc for an undisclosed amount. It has been linked to a few other global firms which are up for sale. 

Shares of Sun Pharma were trading at Rs 802.50 each, down 2.47 per cent on the BSE in a flat Mumbai market at 11.05 AM on Friday.

(Edited by Joby Puthuparampil Johnson)


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Sun Pharma to raise up to $2B, may use it for M&As

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