Natco Pharma seeks next level of growth

Funds raised will be used to scale up capacities; base business growing well, launches lined up

Natco Pharma

Natco Pharma plans to raise about Rs 350 crore from qualified institutional buyers at Rs 2,130 a share. The proceeds are to be used for a formulation facility coming at Visakhapatnam, expansions at the tablet manufacturing facility, and API (active pharmaceutical ingredient) facilities. The funds may also be used to pay a part of its debt, according to Natco’s company secretary M Adinarayana. The strategy is to raise funds without stretching the balance sheet, therefore, the equity route. While there will be a 2.5 per cent equity dilution, the expansions will aid growth, therefore, ...