Aurobindo Pharma shareholders have given the nod for the company's proposal for a private placement of Rs 125 crore equity shares. The approval was obtained at the extraordinary general meeting (EGM) on January 15, a statement issued by the company said.
The company plans to use the money raised to upgrade its manufacturing facilities in Andhra Pradesh and attain US Food and Drug Approval (FDA) approval.
Aurobindo is targeting key regulated and unregulated markets in Europe, Latin America and Africa. The company has undertaken a restructuring of its six manufacturing facilities.
Aurobindo is revamping its existing units and is setting up a new one in Vishakhapatnam involving an investment of Rs 30 crore. Aurobindo's plan is to have two bulk units with USFDA approval and two more large-scale cost efficient units as per GMP standards to meet the requirements of emerging markets. The two formulation units are also to be upgraded to get USFDA approval.
These measures are a part of a three-year plan which will result in Aurobindo becoming a R&D-driven company by 2006. The product profile will comprise sterile and non sterile cephalosporins and specialty products. The proceeds from this private placement would also supplement investments in the joint venture that the company has in China and the US.
