Citicorp International Finance Corporation, a part of the Citigroup Global Investments, has scaled up its holding in the Mumbai-based Elder Pharmaceuticals to 13 per cent by acquiring an additional 5.58 per cent stake.
Citicorp had picked up a 7.32 per cent stake in the company through a preferential allotment last month. Elder had issued 12,80,000 shares at Rs 182 each and 450,000 warrants with an option to convert into equity shares at Rs 200 a share anytime within 18 months from the allotment.
Citigroup is planning to appoint its representative on the 11-member board of Elder Pharmaceuticals soon, said a source from the company.
The source said the company plans to use part of the proceeds of Rs 24.2 crore (Rs 242 million) from the preferential allotment for the proposed acquisition of established brands from the local as well as international markets with an objective to broaden its portfolio in new therapeutic segments.
The drug company is now planning to set up three manufacturing units for increasing its formulation manufacturing capacity.
The new facilities are scheduled to come up in Uttaranchal, Himachal Pradesh and Jammu.
Elder is also planning to issue 200,000 shares to ACRAF Spa of Italy and 650,000 warrants to Taib Bank EC of Bahrain on similar lines.
The promoters are holding 32 per cent equity in the company, the sources said.
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