Lupin, a Rs.12,600 crore third largest pharma company in India, has decided to expand its operations in select geographies in near future with organic and inorganic growth to tap renewed growth opportunities. To meet the fund requirements for making acquisitions, capital expenditure, working capital and other corporate purposes, the management has decided to raise Rs.7,500 crore after necessary approvals from shareholders in the coming thirty-third annual general meeting to be held on July 23, 2015.
It is planning to issue equity shares, Global Depository Receipts (GDR), American Depository Receipts (ADRs.or convertible bonds. While no specific instrument of securities has been identified at this stage, the board may opt for an appropriate instrument in the best interest of the company.
With necessary approvals at place, it will enable Lupin to move quickly and take effective actions in capitalizing and seizing opportunities, the moment they are available. The requirement of funds is proposed to be met from the combination of debt and equity.
Further, Lupin is planning to increase the authorized share capital to Rs.200 crore divided into 100 crore equity shares of Rs.2 each by creation of additional 50 crore equity shares of Rs.2 each. The company will be required to suitably alter its Memorandum of Association by altering the existing Clause V to give effect to the proposed increase in the authorised share capital.
As at the end of March 2015, Lupin’s equity capital stood at Rs.89.90 crore and reserves and surplus amounted to Rs.8,784 crore. Its net sales for the year ended March 2015 increased by 13.7 per cent to Rs.12,600 crore from Rs.11,087 crore in the previous year. The company has declared handsome equity dividend of Rs.7.50 per share of Rs.2 each for the year 2014-15.