FMCG firm Zydus Wellness on Thursday said its board has approved plans to raise up to Rs 1,099.98 crore through a combination of issuance of shares to its promoter Zydus Family Trust on a preferential basis and other options.

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In a regulatory filing, Zydus Wellness said its board gave its approval "to issue, offer and allot equity shares on a preferential basis" to Zydus Family Trust. The board has accorded approval to raise Rs 349.98 crore through issuance of 21,30,000 shares at price of Rs 1,643.10 per share.

Further, the board has also approved raising funds up to Rs 750 crore by issuing securities of the company, including equity shares (or equivalent instruments including but not limited to compulsorily convertible debentures, non-convertible debentures with warrants) through a private placement or qualified institutions placements (QIP) to qualified institutional buyers (QIBs) or a combination thereof.

The company said its board has decided to convene an extraordinary general meeting of the members of the company on September 19, 2020, to seek the approval of the members for the proposed fund raising activities.

As of quarter ended June 30, 2020, Zydus Family Trust held 4.29 percent stake in Zydus Wellness. The company offers brands such as Complan, Sugar Free, Nutralite and Everyuth. Shares of Zydus Wellness were trading 2.09 percent higher at Rs 1,757.55 apiece on BSE.

First Published:Aug 27, 2020 10:44 AM IST