Panacea to raise Rs 864 cr for one-time settlement with lenders

Panacea Biotec Tuesday said its board has approved raising up to Rs 864 crore for one-time settlement with its lenders and other purposes.

The company will raise the funds through issue of non convertible debentures on a private placement basis, Panacea Biotec said in a regulatory filing.

The capital once raised would be utilised by the company for one-time settlement with the consortium of lenders and for the settlement of stretched payables, employees' dues and for working capital requirements, among others, it added.

The board also approved demerger of the company's real estate business with few modifications to the scheme of arrangement approved by the board in September 2017.

The company has also convened an extraordinary general general meeting (EGM) on March 25, during which the shareholders will consider company's plans to raise up to Rs 128 crore via issue of warrants on a preferential basis.

The shareholders would also consider transfer of the pharmaceutical formulations business of the company to a wholly-owned subsidiary as a going concern.

Panacea shares Tuesday ended marginally up at Rs 193.60 apiece on BSE.