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Nectar raises Rs 252 cr from NSR for fund expansion

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Press Trust of India Mumbai
Last Updated : Jan 21 2013 | 2:08 AM IST

Pharma company Nectar Lifesciences today said it has raised Rs 252 crore by selling its stake to US-based private equity firm New Silk Route Partners (NSR).

The Chandigarh-based company said in filing to the Bombay Stock Exchange (BSE) that it has raised Rs 91 crore by issuing 2.60 crore share at Rs 34 a piece to NSR group firm-- NSR Direct PE Mauritius-- on preferential basis.

Nectar has further raised Rs 161 crore from the same private equity firm by allotting global depository receipts (GDRs), it added.

The company said it would use the fund for expansion of its generic business, which includes construction of new manufacturing plants, filing of regulatory approvals, R&D, and other associate expenditure apart from strategic alliances and acquisitions.

"Nectar Lifesciences has hailed association of NSR with the company as a landmark achievement, which is likely to add tremendous value to the company's march into highly attractive formulations markets of US, Europe and Japan," Nectar Lifesciences Ltd Executive Director Aryan Goyal said.

With the proposed GDR and preferential allotment of shares, the total equity transferred to NSR would be 72 million shares, accounting for around 30 per cent of the total paid-up capital of the Chandigarh-based firm.

By investing Rs 91 crore, NSR Direct PE Mauritius would be the single largest non-promoter foreign investor in the company, it said.

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First Published: Mar 03 2010 | 2:46 PM IST

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