The Board of Directors of Zydus Healthcare, an arm of Zydus Cadila Group, has cleared the proposal to raise close to ₹1,100 crore through a mix of options including issuance of shares to its promoters and a combination of private placement or Qualified Institutional Placements (QIPs).

The company informed that the Board of Directors met on Thursday and approved issuance, offering and allotment of equity shares on a preferential basis to Zydus Family Trust at a price of ₹1,643 a share for 21,30,000 number of equity shares totalling ₹349.98 crore. As of June 30, 2020, Zydus Family Trust holds 4.29 per cent stake in the company.

The Board has also cleared the proposal to raise funds up to ₹750 crore by issuing securities of the company, including equity shares (of face value of ₹10 each) through a private placement or QIP to Qualified Institutional Buyers, or a combination thereof.

The Board’s consent is subject to approval of the members and any statutory/regulatory authorities in accordance with the law.

The Board of Directors has convened an extraordinary general meeting (EGM) of the company’s members/shareholders on September 19 to seek the approval of the members for the proposed fund-raising.

Zydus Wellness shares ended marginally down at ₹1,715 on BSE Thursday.