Ranbaxy plans ADR to fund foreign buys

Ranbaxy Laborotories is planning to raise funds through an American Depository Reciept. The company's board will meet on Saturday to finalise the size of the issue, which may be over $100 million (Rs 440 crore).

Sources said the ADR would fund foreign acquisitions: the list includes a German pharma firm and a brand in the US.

They added the ADR proposal, if approved by the board, would later be placed as a resolution before the shareholders at a general body meeting.

"It is going to be an enabling resolution which means the company will raise the fund as and when it requires," they said.

The time of the ADR will depend on the finalisation of the acquisitions. Ranbaxy wants to acquire the German company to enhance its product basket in the European market.

It is also in talks with a US company to buy out one of its brand in the US. Sources said Ranbaxy's wanted to expand in the US and the European markets.

Ranbaxy might go in for an acquisition, which would be bigger than the its total revenue, market sources said. Ranbaxy earns more than 70 per cent of its revenue from exports.