Torrent Pharma gets approval for fundraising

Torrent Pharmaceuticals traded lower in the early trade on Tuesday, even post the announcement of approval of fundraising by its board.

The pharma major on Monday released a press note after the market hours, which mentioned about the approval of fundraising. The company said that it has received an approval to raise funds for an amount not exceeding Rs 5,000 crore through the issuance of equity shares including convertible bonds or debentures through Qualified Institutional Placement (QIP) and / or Depository Receipts or through any other mode. The meeting of the board of directors was held on January 27, 2020 which approved the same.

The result of the recently concluded third quarter of FY20 was not very encouraging as its net sales declined by 1.23 per cent on YoY basis. The decline in top-line was due to de-growth in US and Germany markets. Indian business too, witnessed a marginal growth of just 5 per cent on YoY basis. The net profit reported by the company stood at Rs 251 crore, as against Rs 246 crore for same period in the last fiscal year, up by 2 per cent YoY.

At 10.40 am, the stock traded at Rs 1,914, down by 5.56 per cent on BSE.