Funds can be raised through public or private sale of shares to institutional investors, rights issue, preferential allotment or a combination of these avenues, subject to shareholder and regulatory approvals, the company said in a notice to stock exchanges.
The proposed capital infusion is expected to support Zydus’ ongoing R&D investments, expansion into international markets and upcoming launches in the specialty segment.
“The main objective is to deleverage our balance sheet by reducing our existing debt. Along with this, there are strategic measures that will enhance our financial strength and agility to strengthen our capital structure position for future growth,” managing director Sharvil Patel said on an investor call.
“More importantly, we also have an opportunity to look at our US specialty business and grow it beyond saroglitazar,” he said. “Also, we are looking at opportunities in the international market, particularly in Europe and some of the more innovative assets. So, this will give us the ability to execute on some of these.”
Regarding the potential deal size, he said there are currently no actionable deals, but the focus is specialty business and specific brands for the US market as well as India if there is an opportunity or adjacent areas.
Strong growth in profit, revenue
On Thursday, the company reported a 38% year-on-year rise in net profit in the second quarter, while income from operations rose 17% to Rs. 6,123.20 crores. Ebitda increased by 38% to Rs. 2,015.80 crore, margin increased by 5 percent to 32.9%.
Patel attributed the performance to “outperformance in our US and India formulation businesses, continued high growth in international markets and strategic acquisitions in wellness and medtech”.
Zydus also reported positive Phase 3 results for saroglitazar magnesium in the treatment of primary biliary cholangitis for the US market.
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