Nicholas plans $100 mn GDR

The GDR issue would help the company's spread abroad.

Pharmaceuticals major Nicholas Piramal India is planning a nearly $100 million (about Rs 473 crore) global depository receipts (GDR) issue as part of its fund-raising exercise.

The company is likely to announce the details of the issue towards the end of the week.

Sources close to the development said the proposed GDR issue would help the company, which was in the process of expanding its presence in the global drugs market, and would establish its visibility on overseas bourses.

The proceeds of the issue would be utilised to fund expansion drives and acquisitions, they said, adding that the GDR issue would be listed in three months.

A Nicholas Piramal executive refused to comment on the issue. He said: "We are considering several options to raise funds and are not in a position to comment on any particular instrument at this juncture. The board will take a decision on March 12."

With the issue, the company will join several Indian pharmaceutical companies that have floated GDRs. These include Glenmark Pharma, Elder Pharma, Sterling Biotech and Torrent Pharma.

Nicholas Piramal has been growing through acquisitions over the last few years. "Since the company is banking heavily on inorganic growth, it requires a considerable sum of investment," said company sources. Nicholas Piramal is eyeing major acquisitions in the US, among the most lucrative drug markets in the world.

The company is also investing in upgrading the marketing skills of its field staff. It has got the country's largest pool of field executives on its rolls. It is also investing in the promotion of its over-the-counter product portfolio.