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Zydus Wellness to raise Rs 2,575 crore from Cadila, promoters and PEs to fund Heinz India acquisition

7 December, 2018 4:42 PM
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Zydus Wellness to raise Rs 2,575 crore from Cadila, promoters and PEs to fund Heinz India acquisition

Zydus Wellness has said it will be raising Rs 2,574.99 crore through issue of shares on a preferential basis to fund the Rs 4,595 crore Heinz India acquisition.

Zydus Wellness board approved issuing equity shares of face value of Rs 10 each on a preferential basis to the parent Cadila Healthcare, True North (previously known as India Value Fund), Pioneer Investment Fund and Zydus Family Trust, the company said in a filing to stock exchanges.

Cadila Healthcare will be pumping Rs 1,175 crore through preferential route to fund the deal.

The board has also given its nod to raise debt by issuing listed, secured, redeemable, non-convertible debentures on a private placement basis for an amount up to Rs 1,500 crore anytime within a year from the date of passing the special resolution.

Cadila Healthcare holds around 72.08 percent of Zydus Wellness, while the Zydus Family Trust holds about 0.45 percent.

Zydus Wellness, a part of the Ahmedabad-based Zydus Group, said on November 2 that it will be funding two-thirds of the Rs 4,595 crore Heinz India acquisition through equity and the remaining via debt.

Also read: Flipkart Singapore pumps Rs 2,190 crore into India wholesale unit: Report

Source: moneycontrol.com

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