Natco Pharma mulls hiking foreign institutional investors limit to 49 per cent, looks to raise funds

NEW DELHI: Natco Pharma plans to increase the limit of foreign institutional investors (FIIs) to 49 per cent as it looks to raise more funds through issuing shares or convertible securities.

The company's board will meet on May 22 to consider and approve proposals over hiking of FII limit and raising of funds, Natco Pharma said in a filing to the BSE without specifying the amount to be raised.

The board will consider approval to increase investment by FIIs/Foreign Portfolio Investors to 49 per cent. As on March 2015, the FII investment in the company stood at 9.96 per cent.

The filing further said the board would also consider issue of shares or convertible securities in the form of Private Placement, Qualified Institutional Placement (QIP) to FIIs, Qualified Institutional Buyers or any other investors.

Apart from this the board will also consider merger of Natco Organics Ltd, a wholly-owned subsidiary, into itself, the company said.

It will also consider convening of Extraordinary General Meeting of the company, it added.

Natco Pharma stock was trading at Rs 2,110, up 0.74 per cent, on the BSE.