Hyderabad-based public-listed firm Vivimed Labs Ltd is raising Rs 34 crore ($7.5 million) in the form of foreign currency convertible bonds (FCCBs) from International Finance Corporation (IFC), the company has stated in a stock exchange filing. Vivimed Labs is a manufacturer and exporter of specialty chemicals (for personal care and industrial segments) and pharmaceutical products.
The share price of Vivimed Labs was trading at Rs 273 per share, up 0.91 per cent at 2:35 pm. The shares touched a high of Rs 279 in trading today after the deal was disclosed.
Earlier this week, Vivimed said that it was looking to raise up to $50 million through routes like FCCBs, GDRs, QIP, etc.
The deal with the IFC involves a much larger transaction where Vivimed is raising up to $20 million from the private investment arm of the World Bank. The funds will be used by Vivimed for its $42 million capex plans which involve expansion of existing sites at Bidar (Karnataka) and Bonthapally (Andhra Pradesh), besides greenfield projects at Choutuppal (Andhra Pradesh) and an SEZ in Srikakulam (Andhra Pradesh).
Vivimed operates through two divisions – the H&PC Actives Division producing synthetic organic chemistry products including oral care, sun care, skin care and hair care items and preservatives and the Specialty Pharma Division which is into drug delivery and drug discovery, with the focus on providing cures for cancer, arthritis, Syndrome X, macular degeneration, psoriasis and stress.
For the year ended March, 2011, Vivimed reported 19 per cent increase in consolidated revenues to Rs 416 crore, with the net profit increasing more than 57 per cent to Rs 48.8 crore.
see our earlier report