Piramal Pharma has received capital markets regulator Sebi's go-ahead to raise up to Rs 1,050 crore through rights issue of shares.
The pharma firm, which filed draft papers with the regulator in March, obtained its observation letter on July 12, an update with the Securities and Exchange Board of India (Sebi) showed on Tuesday.
In Sebi's parlance, its observations mean its nod to float public issues, including IPO and rights issue.
Going by the draft papers, Piramal Pharma will issue fully paid-up equity shares of the company by way of a rights issue to its existing eligible shareholders for an amount aggregating up to Rs 1,050 crore.
Proceeds of the issue will be utilised for payment of debt and general corporate purposes.
Piramal Pharma provides end-to-end pharma services to customers and a portfolio of differentiated pharma products across a domestic and global distribution network.
It operates under three business verticals - Piramal Pharma Solutions, an integrated contract development and manufacturing organization (CDMO); Piramal Critical Care, a complex hospital generics (CHG) business and India consumer healthcare (ICH) business, selling well-known over the counter brands such as Little's, Lacto Calamine and I-Pill.