Vera Laboratories to come out with a preferential issue

Hyderabad: Vera Laboratories, a city-based bulk drug company, is planning to come out with a preferential issue of equity shares to the promoters by converting the share application money and unsecured loans already brought by them. The board of directors of the company is meeting on 7 January to consider the issue.

Vera Labs, which has a US Food and Drug Administration-approved manufacturing unit near Visakhapatnam, has been going through a bad time suffering from a huge debt burden and low-capacity utilisation at its plant for several years.

The company recently entered into a contract manufacturing agreement with Alpex International, a Nicholas Piramal group company, and hopes to improve the capacity utilisation with the help of the latter.