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Thursday, Nov 06, 2003

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Corporate - Preferential Allotments

Aurobindo EGM clears pref offer

Our Bureau

Hyderabad , Nov. 5

THE equity shareholders of Aurobindo Pharma Ltd (APL) have approved the company's proposal to go in for private placement of 38-lakh equity share warrants for raising funds to the tune of Rs 229.52 crore.

At an extraordinary general meeting held here on Wednesday, the shareholders have also approved the proposal to increase the investment limit of foreign institutional investors (FIIs) from 24 per cent to 49 per cent of the paid-up capital, the company informed the stock exchanges.

The APL board had recommended the preferential issue for raising Rs 229.52 crore, where Citigroup acted as the exclusive arranger. The share warrants would entitle the allottees to subscribe to equity shares at a price of Rs 604 per share of Rs 10 (inclusive of a premium of Rs 594 per share).

Of the proposed 38-lakh equity share warrants, the Bahrain-based Citicorp Banking Corporation would get 16.5 lakh warrants, the Mauritius-based ChrysCapital LLC would get 9-lakh shares, while the balance 12.5 lakh shares would be allotted to the APL's Chief promoter, Mr P.V. Ramaprasad Reddy.

Following the preferential issue, the equity capital would increase by 15.70 per cent, up to Rs 28 crore.

The company proposes to deploy the proceeds from this preferential issue for funding future research and development activities, potential acquisitions, working capital, repayment of high cost debts, and general corporate purposes.

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