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Drugmakers Sun Pharmaceutical Industries and Glenmark Pharmaceuticals on Monday announced plans to raise funds.
Sun Pharma said its subsidiary Sun Pharma Laboratories has already raised ₹1,000 crore through issue of non-convertible debentures. Meanwhile, Glenmark told the stock exchanges on Thursday that it was seeking shareholder approval to raise $500 million (₹3,300 crore).
Capex plans“Sun Pharma Laboratories, a wholly-owned subsidiary of the company, has raised, on private placement basis, Rs 1,000 crore by allotment of 10,000… unsecured redeemable non-convertible debentures of face value ₹10 lakh each,” Sun Pharma said in a filing to the BSE. Glenmark Pharmaceuticals, on the other hand, told the BSE that it will raise the money via issue of securities, in domestic as well as foreign markets, to fund its expansion plans, including setting up new manufacturing facilities.
Glenmark is seeking the approval through postal ballot, it said in a BSE filing.
“In order to capitalise on various opportunities for further growth of business, the company intends to enhance its marketing network, both in domestic and overseas markets, set up manufacturing infrastructure, focus on R&D and introduce new products across various markets,” Glenmark said.
Regulatory woesSun Pharma said the debentures will be listed on the BSE under two series, with Series 1 debentures comprising 5,000 debentures amounting to ₹500 crore with a tenor of 24 months, and Series 2 debentures comprising 5,000 debentures amounting to ₹500 crore with a tenor of 39 months.
Sun Pharma did not disclose what it plans to do with the proceeds, but media reports earlier this month suggested it would be used to support internal restructuring. The drugmaker has recently been facing flak over its manufacturing facility in Halol, Gujarat. The company had recently received a warning letter from the USFDA following a September 2014 inspection.
While Glenmark’s shares ended down 1.87 per cent at ₹927.15 on the BSE on Thursday, Sun Pharma’s stock closed flat at ₹790.40.
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