With acquisitions in mind, Lupin to build ₹7,500-crore warchest

Our Bureau Mumbai | Updated on January 24, 2018 Published on June 23, 2015

The company could also look at acquisition of companies as a strategy to gain entry into markets where it did not have a presence, like Brazil or Russia.

Drugmaker Lupin has received a thumbs up from its board of directors to raise up to ₹7,500 crore, possibly with an eye on acquisitions.

Only last month, Lupin Managing Director Nilesh Gupta had said that the spotlight was clearly on an acquisition this year.

The acquisition could be of speciality products or companies in the US or Europe, Gupta had told BusinessLine.

The company could also look at acquisition of companies as a strategy to gain entry into markets where it did not have a presence, like Brazil or Russia, he had said.

In fact, the Brazil acquisition was announced the day Gupta explained his company’s road ahead.

Brazil market

Lupin acquired 100 per cent equity in Brazil’s Medquímica Indústria Farmacêutica SA, marking its foray into the high growth Brazilian market.

The transaction was also expected to shore up its position in the Latin American pharmaceuticals market given its acquisition of Laboratorios Grin in Mexico last fiscal. On Tuesday, Lupin told the stock exchange that its board had given an in-principle approval to raise funds through the issue of securities that is, equity shares, GDRs, ADRs, convertible bonds, equity linked instruments and so on.

The enabling resolution will seek shareholder approval at the annual general meeting later next month.

An Angel Broking report said that at current market price, the equity dilution would be about nine per cent, depending on the option Lupin chooses to raise funds.

The report also added that the funds were possibly towards an acquisition.

Published on June 23, 2015

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.