Mumbai: Maker and exporter of finished pharma dosage forms, Strides Arcolab will raise up to $100 million (over Rs 400 crore) through an FCCB issue to part-finance potential overseas acquisition plans.
The company announced the launch of its foreign currency convertible bonds (FCCBs), which would raise $75 million. In addition, Barclays Capital, the lead manager to the FCCB issue, has an option to increase the issue size by an additional $25 million, Strides Arcolab informed the Bombay Stock Exchange (BSE).
“Given a favourable credit and interest rate environment, we have decided to issue the bonds to meet capital expenditure, finance potential overseas acquisition programmes and invest in an overseas subsidiary,” the company said.
The company, however, did not disclose other details of the acquisition plan.
Application will be made for the bonds to be listed on the Singapore Exchange Securities Trading. The company also proposes to list the shares upon conversion of the bonds at NSE and BSE, Strides said.
State Bank of India is the financial advisor to the issue, the company added.
Shares of the company were last trading at Rs 358.25, up 1% on the Bombay Stock Exchange.