Company board, which met here on Monday, has decided to obtain the shareholders approval effecting raising fund through a special resolution in the forthcoming annual general meeting.

The annual general meeting is to be held on Sept 28.
However, the equity issue will be held only after obtaining the statutory approvals from the concerned departments, said the company sources.

Earlier Aurobindo Pharma Ltd had successfully concluded an issue of 5,51,000 equity shares of Rs 10 each at a premium of Rs 480 per share to the domestic and foreign institutional investors from UK, Hong Kong and Singapore, through a private placement,said the company sources.

The company had raised Rs 27 crore to part finance its proposed research and development activity and development of formulation business.

The price was decided based on book building method and was managed by Jardine Fleming India Securities Ltd. In the post issue, the share capital of the company increased to Rs 10 crore from the exiting Rs 9.45 crore.

Being a largest manufacture of Semi Synthetic Pencillin (SSP) bulk drugs, Aurobindo Pharma Ltd is now working on a expansion plan to increase its presence in the formulations and value added bulk actives business. As of now, Aurobindo Pharma Ltd manufactures 35 bulk drugs 10 intermediates and formulations ranging oral and sterile SSPs such as amoxycillin, ampicillin, cephalosporins, quinolones, macrolides, anti-bacterials and gastro-intestinals. The formulations business is identified as a major thrust areas for growth.

Aurobindo Pharma Ltd has targeted to achieve a turnover of Rs 1,000 during the current fiscal, against Rs 740 crore in the previous year.

It has also in the verge of promoting a wholly owned subsidiary to undertake trading activity in chemical and natural products, said the company sources.