NecLife raises Rs 252 crores

Nectar Lifesciences Ltd (NecLife), a leading Integrated pharmaceutical organization in India, on February 20, 2010 had announced that the company has approved the allotment of twenty six million equity shares at a price of Rs. 35 per share (26,000,000 equity shares of face value of Re. 1 each at a premium of Rs. 34 per share) on preferential basis to NSR Direct PE Mauritius, LLC raising Rs. 910 million. The Company's stock closed at Rs. 33.70 on February 19, 2010 (NSE).

Further, the Company on February 26, 2010 has issued forty six million Global Depository Receipts (GDRs), each representing 1 equity share of Re. 1 each in the share capital of the Company. The Issue price per GDR was USD 0.76 (46,000,000 equity shares of face value of Re. 1 each at a premium of approx. Rs. 34 per share on exchange rate as on February 26, 2010) and total proceeds from GDR Issue stood at USD 34.96 million (approx. Rs. 1,610 million based on exchange rate as on February 26, 2010).

By Investing Rs. 910 million at Rs. 35 per share, NSR Direct PE Mauritius, LLC will be the single largest non-promoter (foreign) Investor In the Company. NecLife has appointed Mr. Vivek Sett as a nominee Director from NSR on the Board of the Company. NSR Direct PE Mauritius is associated with New Silk Route Partners; a high quality global Investor and a leading growth capital firm with over USD 1.4 billion under management and is dedicated to private-equity Investments in India, South Asia, Middle East and other emerging economies of Asia. NSR is one of the leading India centric global PE fund operating out of US which has highly distinguished professionals as co-founders like Mr. Rajat Gupta, Ex Managing Partner & Partner Emeritus, McKinsey & Company & Mr. Parag Saxena, co-founder of Vedanta Capital LLC & INVESCO Private Capital with original investments in iconic companies like Starbucks, Amgen, Polycom & Whole Foods.

Commenting on the allotment, Mr. Aryan Goyal, Executive Director of Nectar Lifesciences Ltd said: "NLL has hailed association of NSR with the Company as a landmark achievement which is likely to add tremendous value to NLL's march into highly attractive formulations markets of US, Europe & Japan which will leapfrog NLL Into the big league In the next 5 years."

Consequent to the preferential and GDR issue, the paid up capital of the Company has increased to Rs. 224,260,970/- comprising 224,260,970 equity shares of the face value of Re. 1 each. The funds raised through this issue of equity capital will be deployed towards expansion of the generic pharmaceutical business, including construction of new manufacturing plants, filing of regulatory approvals, R&D, and other associate expenditures apart from strategic alliances and acquisitions.

Commenting on Mr. Dinesh Dua, CEO & Director of Nectar Lifesciences Ltd said: "We are delighted to have a global high quality investor like NSR on board with us. The capital raised. will help us Implement our strategic business plans of expanding our generic pharma business along with construction of new manufacturing facilities which is expected to drive accelerated growth in the future. Over the past few years we have created a strong platform that can harness our capabilities in the International new generation cephalosporin markets while entering into high margin non-cephalosporin therapeutic segments like Anti-Diabetes, Oncology, Anti-HIV and CVS segments either through green fields or acquisitions."

Nectar already has created footprints In regulated market of Europe with supply of a complex Cephalosporins Oral molecule which will be followed by fast track post qualification supplies of Sterile (Injectable) molecules In US & EU. This coupled with fast track regulatory filings will catapult NLL to the big league of Indian Pharma In the next couple of years. NecLife, promoted by 1st generation entrepreneur, Mr. Sanjiv Goyal currently Chairman & Managing Director, is among the world's largest producers of several third and fourth generation cephalosporin' with a market share of - 40% in semi-regulated markets like Brazil, Mexico, CIS, Turkey has recently made a foray in regulated markets particularly Europe & Impending entry in US & Japan.

Source : Equity Bulls

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