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Wockhardt gets board nod to raise up to Rs2,200 crore

LiveMint logoLiveMint 04-05-2017 Isha Trivedi

Mumbai: Wockhardt Ltd on Thursday said it has got board approval to raise up to Rs2,200 crore through equity and debt instruments.

The company informed the stock exchanges that it plans to raise up to Rs1,200 crore through issuance of non-convertible debentures (NCDs) on a private placement basis and up to Rs1,000 crore through equity instruments, including qualified institutional placement (QIP) of shares.

Wockhardt results: Net loss widens to Rs174.72 crore on US FDA issues

Wockhardt is likely to use the funds for its research and development (R&D) activities, including clinical trials on its new drugs, and capital expenditure requirements, particularly for an upcoming facility in Dubai, chief financial officer Manas Datta said in an interview.

The pharmaceutical company is setting up the facility in Dubai for manufacturing specialty products, including its new antibiotic drugs, for the US and European markets. Datta said the total investment in the facility is estimated to be $35-$40 million and the project may be completed in about 18 months.

The company may also use the funds to pare some high-cost debt and pay off redeemable preference shareholders, Datta said.

Wockhardt has gross debt of Rs3,800 crore, of which short-term debt is Rs670 crore. It also has cash of Rs2,000 crore, he said.

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