Drug firm Strides Shasun is planning to raise up to Rs 1,500 crore to fund expansion, debt repayment and other corporate purposes and has sought fresh approval from its shareholders. The company has called for an extraordinary general meeting on December 12 to discuss the proposal to raise the money. "In order to fund capital expenditure, long-term working capital, investments, expansion of the existing business, debt repayment and other approved corporate purposes, the company proposes to raise up to Rs 1,500 crore in one or more trenches," Strides Shasun said a filing to BSE.
The drug maker may issue equity shares on a private placement basis, issue convertible bonds or such other equity linked instruments or a mix of them, it added. "The shareholders of the company had approved the fund raising of Rs 1,500 crore through postal ballot vide resolution passed on November 6, 2015," Strides Shasun said. However, Shasun merger with Strides Arcolab became effective after November 19.
"To provide opportunity to the shareholders of erstwhile Shashun, who became shareholders of the company to vote on the proposed fund raising, the directors keeping in view the good governance practices felt it prudent to seek fresh approval from the combined shreholders of the merged entity for the same fund raising scheme," it added.
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