Torrent Pharma seeks shareholders' nod to hike borrowing limit

NEW DELHI: Torrent Pharmaceuticals, which has agreed to acquire the branded formulation business of Elder Pharmaceuticals in India and Nepal for Rs 2,000 crore, is seeking shareholders' approval to increase its borrowing limits to Rs 5,000 crore.

In a filing with the BSE, the company said it has issued a postal ballot notice to its shareholders to approve a special resolution to increase the borrowing limit from the current Rs 3,000 crore.

"This increase of the borrowing limits is for the company's future growth plans, both organic and inorganic, including the proposed acquisition of identified Indian branded formulation business of Elder Pharmaceuticals Ltd," the company said.

Earlier in the month, Torrent Pharmaceuticals had agreed to acquire the branded formulation business of Elder Pharmaceuticals in India and Nepal for Rs 2,000 crore to boost its presence in segments such as women's healthcare and pain management.

The other special resolution is "creation of charge on the company's properties for securing the borrowing availed or to be availed within the said limits," Torrent Pharmaceuticals said.

The last date of receipt of assent or dissent by the scrutiniser is by 5 pm of January 20, 2014, it added.

Torrent Pharma, with a turnover of over Rs 3,200 crore, produces formulations and bulk drugs at plants at Indrad, Baddi and Sikkim.

Shares of Torrent Pharmaceuticals were trading at Rs 483.85 per scrip on BSE, up 0.70 per cent, in the afternoon trade from its previous close.