Zydus Wellness board approves fund-raising of up to Rs 1,100 crore

Zydus Wellness offers brands such as Complan, Sugar Free, Nutralite and Everyuth.

FMCG firm Zydus Wellness on Thursday said its board has approved plans to raise up to Rs 1,099.98 crore through a combination of issuance of shares to its promoter Zydus Family Trust on a preferential basis and other options.

In a regulatory filing, Zydus Wellness said its board gave its approval "to issue, offer and allot equity shares on a preferential basis" to Zydus Family Trust. The board has accorded approval to raise Rs 349.98 crore through issuance of 21,30,000 shares at price of Rs 1,643.10 per share.

Further, the board has also approved raising funds up to Rs 750 crore by issuing securities of the company, including equity shares (or equivalent instruments including but not limited to compulsorily convertible debentures, non-convertible debentures with warrants) through a private placement or qualified institutions placements (QIP) to qualified institutional buyers (QIBs) or a combination thereof.

The company said its board has decided to convene an extraordinary general meeting of the members of the company on September 19, 2020, to seek the approval of the members for the proposed fund raising activities.

As of quarter ended June 30, 2020, Zydus Family Trust held 4.29 per cent stake in Zydus Wellness.

Zydus Wellness offers brands such as Complan, Sugar Free, Nutralite and Everyuth.

Shares of Zydus Wellness were trading 2.09 per cent higher at Rs 1,757.55 apiece on BSE.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel