The Board of Directors of Aurobindo Pharma Limited has
approved the proposal for issue of equity shares / warrants on private placement basis
aggregating Rs.125 crore. An extraordinary general body meeting is being convened on 15th
January 2002 to seek approval of shareholders.
Fifty five lakhs equity shares / warrants at a price not less than the minimum price as per
SEBI guidelines are proposed to be issued on private placement basis to financial institutions
/ promoters / corporates / individuals, etc. The company is in the process of finalizing the
investors for this private placement.
Aurobindo has embarked on the strategy of entering regulated markets, in addition to its
growth plans in non-regulated markets. The entry strategy will involve exclusive products in
the area of sterile and non-sterile cephalosporins, specialty products coming out of product
patents but having process patents as well as products coming out of product and process
patents. This will enable Aurobindo to deliver value to the consumers and the stakeholders.
The Company has already taken major steps towards the achievement of its objectives. A
world-class R&D center is now fully operational in Hyderabad. Two mega bulk facilities and
two large formulation facilities are getting upgraded to comply with US FDA requirements. The
joint venture in USA is making good progress as per the schedule. |
|
To achieve significant penetration in non-regulated markets,
Aurobindo has been widening its portfolio and therapeutic groups, marketing networks and
manufacturing establishments in key countries across the world. The initiatives include joint
ventures in China and subsidiaries in Brazil and Mexico. The up gradation of unit 5 and
construction of a new facility near Visakhapatnam will provide a further competitive edge to
the company in its quest to enhance its presence in non-regulated markets.
The funds required for these projects are being met by internal accruals and fresh borrowings.
To meet the additional fund requirement for the on-going projects and capital expenditure
plans as well as investment in the joint ventures, Aurobindo intends to raise further capital
by way of private placement.
The private placement will involve preferential allotment of equity shares/ share warrants or
other instruments as set out in the resolution to foreign institutional investors, financial
institutions, mutual funds, banks, corporates, promoters or such other persons as the Board
may deem fit with suitable premium for an aggregate value of Rs.125 crore.
With the completion of these projects and the capital expenditure plans, the company can look
forward to sustained and healthy growth. In addition, economies of scale, enhanced presence in
non-regulated markets and entry into regulated markets are expected to result in a huge
positive impact on both the top line and the bottom line of the company. Indeed, Aurobindo
Pharma is well placed to become an R&D led world-class international pharmaceutical
company. |
|
PRESS
ROOM 
