Promoters pump Rs 80 crore into Lupin

Drug major Lupin's promoter group has infused around Rs 80 crore into the company.

Desh Bandhu Gupta, chairman of Lupin, announced that, having roped in CVC international as a strategic investor, the financial restructuring of the company is over.

"Our debt burden now stands reduced by around Rs 300 crore, from Rs 587 crore at the beginning of the year. The promoter group has infused close to Rs 80 crore into the company. The funds have been used to re-pay debt," Gupta added.

The company has sold 12.5 per cent stake to CVC International ""a Citi group company"" for a total consideration of around Rs 126 crore. This was followed by the induction of two Citigroup representatives "" Marc Desaedeleer and Sunil Nair"" on the board of Lupin.

The promoter group has further reduced its holding in the company by selling 4 per cent stake through open market operations which entailed an inflow of around Rs 90 crore. The promoter holding in the company now stand reduced to around 52 per cent.

The company also announced that its investigational new drug application (INDA) for prophylactic treatment of migrane has been approved by the IND sub-committee of the Indian Council of Medical Research (ICMR).

Meanwhile, the company is planning to go for a listing on the New York Stock Exchange (NYSE). The company is chalking out a major expansion plan to establish a leadership position in the global market.

While on one hand it is scouting for acquisition opportunities abroad, the company envisages a major investment in the area of research and drug development.

Also, having identified Europe, the US, Japan, Australia, New Zealand and the CIS countries as its core export markets, the company plans to beef up marketing efforts in these regions to boost exports.

"We are searching for acquisition opportunities in the US and Europe. We are looking at acquiring a biotech company to mark our foray in this segment. We are also open to other acquisition opportunities. Our inorganic growth plans are aimed at acquiring a critical mass to establish a leadership position in the global pharmaceutical market," Gupta added.