The U.S.-based OrbiMed, a global healthcare-dedicated investment firm, plans to invest Rs.50 crore in Shasun Pharmaceuticals. The investment will be made through Caduceus Asia Mauritius Limited (CAMIL), an investment arm, at a price of Rs.76 per share.
This would translate into 11.93 per cent equity stake for the new investor post-allotment of shares.
According to S. Hariharan, Chief Financial Officer, Shasun Pharmaceuticals, the funds raised will be used to part-finance the capital expenditure programme for 2012-13, which will include building a new manufacturing facility in Vizag. Shasun has drawn up a Rs.250-crore capex initiative. Accordingly, it intends to mobilise Rs.50 crore from internal accruals and raise Rs.100 crore via loans.
The balance is expected to be raised through private equity.
Following CAMIL move to pump equity into the company, the promoters' holding in Shasun is set for a dilution. The promoters at present hold 46.73 per cent stake in the company. Mr. Hariharan said the equity dilution process would also improve the debt-equity ratio. The current debt-equity ratio stood at 3.93. This would be reduced to 2 by next year, he added.
“OrbiMed's two-decade experience with pharma and life science companies will be helpful in shaping the company's strategic roadmap,” according to its Managing Director S. Abhaya Kumar. Shasun, he said, was on a new growth path.
“OrbiMed's offer came at a right time when the company is planning for a significant growth in the next couple of years,” he added.
The board of Shasun has already cleared the investment proposal from CAMIL. The transaction, however, is subject to the approval of shareholders.
The board has called for an extra-ordinary general meeting on March 22, to approve the transaction.