Pharmaceutical firms upbeat

Pharmaceutical companies from the region have now started expanding their wings. Companies from the region are working on alternative sources of funding to execute their expansion plans.

Chandigarh-based Parabolic Drugs, manufacturer of Active Pharmaceutical Ingredients (API), recently hit the capital market with an aim to garner equity issues of Rs 200 crore. The company intends to utilise the proceeds of the issue towards financing its capital expenditure plans and pre-payment of loans.

Nectar Life Sciences, which has registered a 13.6 per cent increase in gross sales compared to the previous year, has seen New Silk Route Direct PE Mauritius LLC invest Rs 2,520 million through preferential allotment and the GDR route. According to company officials the funds raised through this issue of equity capital would be deployed towards expansion of the generic pharmaceutical business, including construction of new manufacturing plants, filing of regulatory approvals, R&D, and other associate expenditures apart from strategic alliances and acquisitions.

Chandigarh-based Surya Pharmaceutical Limited is planning to raise Rs 500 crore through various instrument like Rights Issue or Global Depository Receipts (GDRs)/ American Depository Receipts (ADRs)/Foreign Currency Convertible Bonds (FCCBs), through External Commercial Borrowings (ECBs) for funding its new projects, expansions, diversification, acquisitions, other business expenses and to augment working capital requirements. The proceeds from the issues would be utilised to fuel its business plan which involves setting up API’s new manufacturing unit near Chandigarh with an investment of over Rs 500 crore.

Venus Remedies, another region-based player maintain the research-based super specialty sterile injectable manufacturing pharmaceutical company is looking to reap benefits from the foundation stone it has laid earlier.