Aptus Pharma Ltd. saw its shares rise in Monday's trade following the announcement of its next growth phase. The company plans to raise ₹44.88 crore (approximately ₹45 crore) via a preferential issue of equity shares to selected investors, aiming to bolster its manufacturing capabilities and expand its market presence.
Strategic Fund Allocation
According to a company filing, Aptus Pharma intends to allocate ₹25 crore of the proceeds towards capital expenditure. This includes significant investments in land acquisition, the construction of a new manufacturing plant structure, advanced hi-tech storage facilities, and new vehicles. An additional ₹10 crore will be dedicated to working capital to support day-to-day operations. The remaining ₹9.88 crore is earmarked for general corporate purposes, which encompasses broader business expansion initiatives, strengthening the company's financial position, and debt reduction.
Boosting In-House Manufacturing
A key component of Aptus Pharma's strategy is to enhance its in-house manufacturing capabilities. The company aims to eventually meet approximately 20 percent of its product requirements through its own production facilities. This move is expected to provide greater control over product quality, improve supply-chain management efficiency, and ensure better product availability, all while supporting the development of its proprietary brand portfolio.
Expanding Domestic and Global Reach
On the domestic front, Aptus Pharma is focused on strengthening its sales and distribution network across various regions of India, including West, Central, East, and South India, as it moves towards establishing a comprehensive Pan-India presence.
Internationally, the company plans to explore new opportunities in emerging markets. It will target regions such as Africa, the Middle East, and Latin America through product registrations, forging export partnerships, and other strategic business arrangements. This global expansion will be pursued based on careful assessment of commercial viability, prevailing market conditions, and necessary regulatory approvals.
The preferential issue is contingent upon approval from shareholders at the company's Annual General Meeting, scheduled for September 14, 2026, along with other applicable statutory and regulatory clearances. The company expects to utilize the funds within 36 months of their receipt.