Feb 21, 2017 01:39 PM IST | Source: Moneycontrol.com

Granules shares up 6% as World Bank arm to invest Rs 318cr in co

Granules India shares rallied 5.6 percent intraday Tuesday after a media report indicated that World Bank subsidiary will invest Rs 318 crore in the pharmaceutical company.

Granules shares up 6% as World Bank arm to invest Rs 318cr in co

Moneycontrol Bureau

Granules India shares rallied 5.6 percent intraday Tuesday after a media report indicated that World Bank subsidiary will invest Rs 318 crore in the pharmaceutical company.

"International Finance Corporation (IFC), the private-sector lending arm of the World Bank, on Monday said it will provide debt of USD 47.5 million (Rs 318 crore) to drug maker Granules India to help finance its investment plans," a media report said.

Granules India is building a bulk drug manufacturing facility in Vishakhapatnam, expanding its existing capacities and investing in research and development to make products with higher value addition.

The total investment required is estimated at about USD 84 million, with debt of USD 68.5 million, including IFC's contribution. The remaining will be met through equity and internal accruals, the report said quoting IFC.

This is the fourth investment made by IFC in Granules India after it first made the debt and equity investment in 2007, the report added.

Granules India, headquartered in Hyderabad, manufactures active pharmaceutical ingredients (API), pharmaceutical formulation intermediates and finished dosages.

The company has manufacturing facilities in Andhra Pradesh and Telangana. It also has one plant each in China and USA.

At 12:11 hours IST, the stock was quoting at Rs 130.50, up Rs 5.15, or 4.11 percent on the BSE.

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