Natco Pharma gets board nod to raise Rs 1,500 crore

Moneycontrol News

Natco Pharma said its board has given green signal to raise Rs 1,500 crore through sale of shares to investors in coming months.

"Raising funds through further issue of shares or convertible securities of any nature through one or more modes, including but not limited to a further public and private offerings, rights issue, qualified institutional placement, issue of american depository receipts or global depository receipts etc, subject to such approvals as may be required up to an amount not exceeding Rs 15,000 million," the company said in a filing to stock exchanges.

The company said it is holding extraordinary general meeting of its shareholders on November 29 to ratify the fund raising proposal.

Natco didn't specify what it intends to do with fresh capital. The company is riding high on back to back approvals of first-to-file generics anti-flu drug oseltamivir and multiple sclerosis drug glatiramer acetate injection in US market. While exclusivity of oseltamivir ended in last fiscal, the company currently enjoys exclusivity for glatiramer acetate injection 40 mg version.

The company said it plans to use the proceeds to expand in domestic formulation business and other "interesting things".

The company largely derives its revenues from sale of anti-cancer and Hepatitis-C drugs in Indian market.

Natco posted Rs 84.4 crore net profit in Q2 showing a growth of 27.5 percent, while revenues stood at Rs 432 crore.

Shares of Natco were trading flat at 997 on BSE at 9.11 am, the benchmark Sensex gained 0.28 percent to 33,667.34 points.