Specialty chemicals and drugmaker Vivimed Labs Ltd has raised Rs. 127 crorefrom private equity investors by selling almost a quarter of itself, intendingto use the proceeds to fund expansion. The firm made a preferential allotmentof shares to Mauritius-based NYLIM Jacob Ballas India Fund III and KitaraCapital, based in West Asia, equivalent to a combined 24.6% stake. NYLIM JacobBallas purchased a 13.2% stake for Rs. 67 croreat Rs. 315 per share and Kitara bought 11.4%for Rs. 60 crore at Rs. 327 a share.
The money raised will fundVivimed’s expansion plans for speciality chemicals at its existing locations inBidar (Karnataka), Hyderabad, a new project near Visakhapatnam and a US Foodand Drug Administration-compliant drug factory in Choutuppal, near Hyderabad,as it seeks to more than double revenue by March 2013.Vivimed has a commitment of raising $20 millionfrom International Finance Corp., a World Bank arm, of which it recently raised$7.5 million through a sale of foreign currency convertible bonds. In 12-18months, the production is expected to begin at the new facilities. Theexpansion plans will help the company increase revenue to Rs. 1,000 crore by the 2013 fiscal year. Vivimed reported Rs. 416 crore in revenue for the fiscalyear ended March with a net profit of Rs. 48.83crore, posting 21% growth in sales and 57% growth in net profit.
Company Name | CMP |
---|---|
Sun Pharma Inds. | 1820.65 |
Dr. Reddys Lab | 1350.00 |
Cipla | 1484.00 |
Lupin | 2182.90 |
Zydus Lifesciences | 978.00 |
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