Torrent Pharmaceuticals, has announced plans to raise Rs 5,000 crore through the issuance of equity shares and convertible bonds via a Qualified Institutional Placement (QIP). This strategic move received the green light from the company’s board on May 24 and will be finalized following the upcoming Annual General Meeting (AGM).
In a regulatory filing, the company stated, “Recommended to the members to obtain enabling approval for issuance of equity shares including convertible bonds or debentures through Qualified Institutional Placement (QIP) and or any other modes for an amount not exceeding Rs 5,000 crore in the upcoming Annual General Meeting (AGM).”
This announcement comes on the heels of Torrent Pharma reporting robust financial results for the March quarter. The company posted a 57 percent increase in its consolidated net profit, reaching Rs 449 crore. Revenue for the quarter rose by 10 percent year-on-year to Rs 2,745 crore. Additionally, the earnings before interest, tax, depreciation, and amortization (EBITDA) surged by 21 percent to Rs 883 crore.
In further positive news for shareholders, the board has recommended a final dividend of Rs 6 (120 percent) per equity share of Rs 5 each. This is in addition to an interim dividend of Rs 22 (440 percent) per equity share that was disbursed in the last quarter.
Torrent Pharmaceuticals, known for its wide range of branded and generic drugs, manufactures various dosage forms including tablets, capsules, and extended-release formulations. The company’s major markets include India, the US, Germany, and Brazil.
Despite the positive earnings report, shares of Torrent Pharma ended 3.2 percent lower at Rs 2,606.05 on the National Stock Exchange (NSE) in the previous trading session. Over the past year, however, the stock has seen a significant rally, climbing 53 percent and outperforming the benchmark Nifty 50, which has risen by 25 percent during the same period.
As Torrent Pharma prepares for its AGM, stakeholders will be closely watching for the approval of this significant fundraising initiative, which is poised to bolster the company’s financial flexibility and support its growth strategies in the highly competitive pharmaceutical market.
