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Vivimed Labs Ltd has raised Rs 127 crore through preferential allotment of shares to private equity players, NYLIM Jacob Ballas (JB) India Fund and Kitara Capital.
The JB Fund invested Rs 67 crore to subscribe to compulsorily convertible preference shares which will be converted within 18 months at Rs 315 a share.
This would account for a 13.2 per cent stake in the Hyderabad-based company on a fully diluted basis.
West Asia-based Kitara Capital invested Rs 60 crore to subscribe to equity shares at Rs 327 a share, for a 11.4 per cent shareholding in Vivimed.
The proceeds of the investment would finance Vivimed’s ongoing expansion plans for specialty chemicals at its existing locations in Bidar (Karnataka), Hyderabad and Visakhapatnam.
In addition, the funds would also be used in setting up of a greenfield project at PydiBhimvaram near Viskakhapatnam and a plant at Choutuppal near here, among others.
“It was the need of the hour to ensure funding for Vivimed Labs’ aggressive growth plans and will help the company catapult to new levels of performance,’’ Mr Santosh Varalwar, Managing Director and CEO of Vivimed, said in a release.
A nominee of NYLIM JB Fund will join Vivimed’s board of directors in due course, the release added.
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