Pharma major Cadila Healthcare (CHL) is seeking shareholders’ nod for raising up to ₹10,000 crore from the capital markets by issuing equity shares, including instruments such as convertible bonds/debentures through qualified institutional placement, to capitalise on the organic and inorganic growth opportunities available in the pharma sector.

CHL said that while no specific instrument(s) of securities were identified, the board might opt for an ‘appropriate instrument in the best interests of the company’.

The resolution seeks approval of shareholders to offer equity shares in one or more tranches to investors, inter alia through QIP by way of private placement.

5% discount The board might offer a discount of not more than 5 per cent on the price calculated for the QIP or as might be permitted under SEBI rules.

While not specifying any particular acquisition target, CHL in its explanatory statement attached to the postal ballot notice to the shareholders, said that as the internal resources available may not be sufficient to fuel its growth plans, it was seeking to have ‘enabling approvals in place’ to meet its funding needs.

In a notice filed with stock exchanges, the company said it is also seeking shareholder nod for enhancing the borrowing limits to ₹10,000 crore from ₹1,500 crore. Approval was also being sought for issuing unsecured/ secured redeemable NCDs/ bonds on private placement basis.

Voting details While the postal ballot forms should be returned to the company-nominated scrutiniser by May 18, e-voting on the resolutions would be allowed from April 17 to May 18. The results would be made known on or before May 23.

The fund requirements were proposed to be met from both equity and debt instruments from domestic and international markets. To achieve cost optimisation, it would be done with an ‘appropriate mix of equity and debt’.

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