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C.R. Sukumar

Hyderabad , May 16

MATRIX Laboratories Ltd is currently on the verge of finalising a global offering to the tune of $200-million for meeting its growth objectives.

A senior Matrix Lab official told Business Line that the company has decided to go in for the global offering also to fund the capital expenditure needs for the increased business opportunities and to tap opportunities emerging in the global markets.

The company proposes to raise funds from the international capital markets by offering either American Depository Receipts (ADRs), Global Depository Receipts (GDRs), foreign currency convertible bonds (FCCBs) or international bonds, the official said.

"The detailed terms and conditions for the offer and the rights and privileges of the holders of these ADRs, GDRs or FCCBs will be determined in consultation with the lead managers, advisors and underwriters to be appointed soon. We have not yet decided on the pricing of the global offering. The committee constituted for the purpose will finalise the terms in consultation with the intermediary agencies in accordance with the international practice," the official said.

The company, which has recently decided to forge a 50:50 joint venture company in India in alliance with the South African pharma major Aspen Pharmacare Holdings Ltd, now plans to transfer one of its existing manufacturing facilities in favour of the joint venture.

Aspen, the largest producer of generic drugs, is one of the three principal suppliers of antiretroviral (ARV) medicines approved by the Clinton Foundation.

According to the Matrix Labs official, the company's Unit-II located at Kazipally here has the required manufacturing facilities for the joint venture in the areas of active pharmaceutical ingredients (APIs) for major ARVs. "We plan to transfer this facility to the proposed joint venture at an estimated consideration of $18.9-million," he said.

Further, the company also finds the need to enhance its borrowing limits in the backdrop of new strategy for moving up the pharmaceutical value chain. Keeping in view the $200-million global offering, the company proposes to raise the limit to Rs 1,300 crore from the existing limit of Rs 400 crore, the official added.

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