Natural Capsules' subsidiary Natural Biogenex completes its maiden fund-raise of Rs18.75 crore; Stock zooms ~7%

21 Nov 2022 , 09:16 AM

Natural Capsules Limited has informed that  it’s subsidiary Natural Biogenex Private Limited, an emerging steroidal API player announced the successful completion of its maiden fund-raise of Rs18.75 crore. The Company has allotted 16.67 lakh shares representing 7.69% of the total outstanding shares post-allotment, valuing the subsidiary at Rs225 crore pre-money.

Commenting  on this milestone, Sunil Mundra, Executive Director, said “I am pleased to announce this maiden fund-raise for our wholly-owned subsidiary Natural Biogenex Private Limited, this is the first external fund-raise that we have undertaken for our steroidal API business. Not only does this fund-raise validate our years of efforts in building this entity, but it also makes Natural Biogenex more atmanirbhar (self-reliant) in undertaking its endeavour to provide quality APIs & intermediates to our potential customers in India and in international markets.

The proceeds from this fund-raise will be deployed in financing the project requirements of the API business and will allow us to scale the business with lesser financial leverage.

As many of you may be aware, Natural Biogenex aims to be one of the few Indian companies producing bulk drugs using fermentation technology in the steroidal product range. Our products that will be manufactured using a complex, high-end, patented technology at our Tumkur facility will prove to be a major import substitutes for the country. We remain on track to commission the facility by end of this financial year and begin commercial operations by Q1FY24.

On the demand side, our outlook remains solid given the positive interactions with potential customers in India and abroad, and our first target would be to reach ~50% capacity utilisation for this facility by end of FY24. This we believe will mark a strong entry for us in the fermentation API space.”

On Monday early morning trade, Natural Capsules Ltd is currently trading at Rs572.50 per share up by Rs36.25 or 6.76% from its previous closing of Rs536.25 per share on the BSE.

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