Torrent Pharma Unveils Ambitious ₹5,000 Crore Fundraising Plan Amid Robust Growth

Torrent Pharmaceuticals Ltd has paved the way for a significant capital infusion, with its board approving a fundraising strategy of as much as ₹5,000 crore in the form of issuance of equity shares and convertible bonds. The move, awaiting approval at the forthcoming Annual General Meeting (AGM), indicates the company's desire to power its next leg of growth and acquisition drives.

 

Key Highlights

 

Torrent Pharma board okayed raising up to ₹5,000 crore through Qualified Institutional Placement (QIP) or other allowed modes subject to final approval at the AGM.

 

The funds will be raised by way of issue of equity shares, convertible bonds, or debentures, according to the company's regulatory filing.

 

The fundraising move follows a robust financial performance, with consolidated net profit for March quarter rising 57% year-on-year to ₹449 crore.

 

Revenue in the same quarter increased 10% YoY to ₹2,745 crore, and EBITDA increased 21% to ₹883 crore, with margins widening to 32.2%.

 

The board also approved a final dividend of ₹6 (120%) per equity share, along with an interim dividend of ₹22 (440%) per share that was paid in the last quarter.

 

Torrent Pharma’s shares ended at ₹2,606, down 3% on the NSE after the announcement, but the stock has outperformed the Nifty 50 over the past year, rallying 53% compared to the benchmark’s 25% gain.

 

The company remains active in the M&A space, having shown interest in acquiring Mumbai-based JB Pharma, highlighting its growth ambitions.

 

Torrent's main business has branded and generic pharmaceuticals, with major markets in India, the US, Germany, and Brazil.

 

What's Next?

 

The mooted fundraising will give Torrent Pharma the money power to chase strategic buys, widen its pipeline of products, and deepen its footprint in the key global markets. Investors and market observers will be eagerly looking for more details and the decision of the AGM, which will decide on the final nod for this important capital-raising exercise.

 

Sources: CNBC TV18, Moneycontrol, Digital Health News