Torrent Pharma may raise up to $1.7B through equity and debt

Ahmedabad-based drugmaker Torrent Pharmaceuticals Ltd may raise as much as Rs 10,500 crore ($1.7 billion) through a mix of equity & debt offering, as per a stock market disclosure.

The company's board has cleared the fundraising plan, pending shareholders’ approval. It did not say where the money would be used.

The firm proposes to raise up to Rs 3,000 crore through issue of equity, which includes convertible bonds/debentures through a qualified institutional placement (QIP) or depository receipts or any other modes.

In addition, it may raise as much as Rs 7,500 crore through unsecured/secured redeemable non-convertible debentures/bonds by way of private placement.

Torrent group was set up in 1959 by first generation entrepreneur UN Mehta, father of Sudhir Mehta and Samir Mehta. Sudhir joined the family business in early 1970s and took control of the group after the demise of his father.

Last year Torrent acquired branded formulation business of Elder Pharmaceuticals in India and Nepal for Rs 2,004 crore.

Torrent is backed by ChrysCapital which invested in the firm through open market purchases.

(Edited by Joby Puthuparampil Johnson)

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