Chandigarh-based bulk drug maker Parabolic Drugs Ltd has firmed up plans to raise additional capital by giving away 10% equity stake. The company aims to raise Rs 30 crore through this deal with a Swiss private equity fund BTS Investment Advisors. The money will be utilised to fund the expansion of the business.
Talking to FE, Pranav Gupta, managing director of Parabolic Drugs said, “The deal is in the final stages and should be complete by the year end.” He refused to reveal the name of the private equity player but confirmed that the company is Europe-based.
He shared, “We had a round of private equity last year when US-based Minivet had picked up 10% stake for about Rs 10 crore. This will be the second deal. We are planning to expand the capacity of our existing units at Dera bassi and Panchkula. We are also developing an R&D center in Barwala at a cost of Rs 20 crore, the construction of which has already started. It is expected to commission by mid-next year. It will form the backbone to widen our product portfolio.”
The nine-year-old firm, which makes active pharmaceutical ingredients (APIs) and API intermediates, will soon be diversifying into manufacturing anti-biotics, cardio vascular, diabetes, hypertension products etc.
“This year onwards we integrated by producing sterile (injectable) grades. We have short listed sites in Himachal, J & K, Haryana and Punjab to establish new manufacturing facilities within the next two years. We export about 70-80% of our products to Africa, China, Latin America, the rest of Asia, but now we will be keeping this ratio constant. The targeted turnover for this fiscal is Rs 350 crore.”
The company tried to bring out an IPO last year but could not succeed due to some reasons. When asked about the IPO, Pranav said, “Since we’ll be getting additional equity from private players, money is not a constraint at present. We’ll be keeping a tab on the market and the IPO will come at a later stage. We are also considering acquiring some firms from anywhere across the country or even abroad. We’ll also be opening up a new office in USA by the year 2009.”