Ahmedabad-based Torrent Pharmaceuticals Limited is planning to raise ₹5,000 crore through various instruments, including equity shares, global depository receipts, and foreign currency convertible bonds. The company’s board of directors approved the fundraising plan on Friday, May 24, 2024.
The company will use the funds to finance its growth plan, including capital expenditures, acquisitions, and new product launches. Torrent Pharma has a strong presence in the domestic market and has been expanding its global footprint in recent years. The company’s revenue for the fiscal year 2023 was ₹14,524 crore, a growth of 14.2% over the previous year.
According to the company’s statement, the funds raised through the equity shares will be used to strengthen the company’s balance sheet and improve liquidity. The company will also use these funds to repay its debt and reduce interest costs.
Torrent Pharma has a strong pipeline of products in various therapeutic areas, including cardiology, neurology, and gastroenterology. The company has been focusing on research and development to bring new and innovative products to the market.
The company’s shares jumped by over 6% on the news of the fundraising plan. The stock closed at ₹4,215 on Friday, up from the previous close of ₹3,956. The company’s market capitalization is currently at ₹69,258 crore.
The company’s CEO said that the fundraising plan is a reflection of the company’s commitment to its growth plans and the confidence of its shareholders in the company’s future prospects. He added that the company is well-positioned to capitalize on the opportunities in the domestic and global markets.
The fundraising plan is subject to regulatory approvals and market conditions. The company will announce the details of the fundraising plan, including the size, timing, and pricing of the instruments, at a later stage.