Strides plans to raise $100 mn

MUMBAI: Mid-sized pharmaceutical company Strides Arcolab has convened an extra-ordinary general meeting(EGM) on July 23 to seek approval from shareholders for raising equity worth nearly $100 million.

The money would be primarily used for acquisitions, investments and other capital expenditure, the EGM notice to shareholders said.

Shareholders will also vote on a resolution which seeks to hike the borrowing limit for the company’s board of directors of up to Rs 2,500 crore. The shareholders had hiked the borrowing limit up to Rs 1,500 crore in 2007.

The company fully acquired two oncology joint ventures it had forged with South Africa-based Aspen Pharmacare Holdings in March for $117 million. This was post its acquisition of Aspen’s facility in Campos, Brazil for $75 million.

Strides Arcolab had also indicated its desire to buyout its 57%-owned subsidiary Ascent Pharmahealth (APH) which is listed on the Australian stock exchange.