Plethico Pharma plans to raise $60-100m for debt repayment

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Plethico Pharma plans to raise $60-100m for debt repayment

Plethico Pharma is looking to raise some money. In an interview with CNBC-TV18, Sanjay Pai, Chief Financial Officer of Plethico Pharma, gave the details of it.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Plethico Pharma to raise upto $60-100 mn; stk gains 4.7% ALSO READ See latest News about Plethico Pharma See previous management interviews See what other Experts & Brokerages are saying about Plethico Pharma Plethico Pharma BSE | NSE 29/05/12 Are Mutual Funds betting on Plethico Pharma?

Plethico Pharma is looking at raising USD 60-100 million for which it is seeking shareholders' approval, said its Chief Financial Officer, Sanjay Pai. "The company will use the funds to repay debt. We are looking at 13-18% equity dilution," he added.

Below is a verbatim transcript of an exclusive interview with Sanjay Pai on CNBC-TV18. Also watch the accompanying video.

Q: How much are you looking to raise and what instrument will you choose?

A: There are couple of options that we are toying with right now. Nothing is finalised as of yet. We are looking at rasing about something between USD 60-100 million. However, we have not yet decided the time. We are just taking an extraordinary general meeting and taking shareholders approval for raising these funds.

Q: Why do you need to raise these USD 60-100 million?

A: In the coming two-three years, we have lot of debt repayment that would happen. A potential FCCB which may or may not convert, As a CFO, I need to plan well in advance to ensure that the company's liquidity and other things.

Q: It will be an equity instrument for sure, either a QIP or GDR whatever you decide?

A: It could be any of the modes. We are applying to the shareholders to give us permission to enable us to raise either equity or any possible instrument. Since it is to repay the debt obviously it cannot be debt.

Q: The ones lined out are QIP, ADR, GDR, FCCB, is that correct?

A: Yes it could be any of them.

Q: So if you use any of the pure equity instruments how much dilution will it lead to?

A: It could lead anything between 13-18%, whatever.