Fermenta Biotech Board Approves Fundraising Plan Worth Up to ₹150 Crores

2 min read     Updated on 10 Dec 2025, 09:34 PM
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Shriram SScanX News Team
Overview

Fermenta Biotech's Board of Directors has approved a comprehensive fundraising proposal worth up to ₹150 crores through various financial instruments including equity shares, convertible securities, warrants, and debentures. The company plans to utilize multiple issuance methods such as public issues, rights issues, preferential allotments, and QIPs, providing maximum flexibility for execution subject to regulatory approvals and shareholder consent.

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*this image is generated using AI for illustrative purposes only.

Fermenta Biotech has announced that its Board of Directors approved a significant fundraising proposal during a meeting held on December 10, 2025. The company plans to raise funds up to ₹150.00 crores through various financial instruments, marking a strategic move to strengthen its capital base.

Fundraising Structure and Securities

The board has approved raising funds through multiple types of securities to provide flexibility in execution. The comprehensive approach includes various financial instruments designed to meet different investor preferences and market conditions.

Security Type: Details
Equity Shares: Direct equity participation
Convertible Securities: Securities convertible into equity shares
Warrants: Rights to purchase shares at predetermined price
Fully Convertible Debentures: Debt instruments convertible to equity
Partly Convertible Debentures: Hybrid debt-equity instruments
Non-Convertible Debentures: Pure debt instruments with warrants
Convertible Preference Shares: Preferred equity with conversion rights

Issuance Methods and Flexibility

The company has structured the fundraising to utilize multiple issuance methods, providing operational flexibility based on market conditions and regulatory requirements. The board has approved various modes of fund raising to ensure optimal execution.

Issuance Mode: Description
Public Issue: Open market offering to retail and institutional investors
Rights Issue: Preferential offering to existing shareholders
Preferential Allotment: Direct allocation to selected investors
Private Placement: Non-public offering to qualified investors
Qualified Institutions Placement (QIP): Institutional investor focused offering
Multiple Tranches: Staged execution across different time periods

Regulatory Disclosure and Compliance

As per the detailed disclosure under Regulation 30 of SEBI Listing Regulations, the company has provided comprehensive information regarding the fundraising proposal. The securities may be issued in one or more tranches through any combination of approved methods, subject to applicable laws and regulatory compliance.

Regulatory Parameter: Details
Maximum Amount: ₹150.00 crores
Regulation: SEBI Listing Obligations and Disclosure Requirements
Scrip Code: 506414
Pricing: As per applicable law and market conditions
Shareholder Approval: Required separately at appropriate time

Board Meeting Details

The board meeting was conducted on December 10, 2025, with specific timing details recorded for regulatory compliance. The meeting commenced at 11:30 a.m. IST and concluded at 2:50 p.m. IST, indicating comprehensive deliberations on the fundraising proposal.

Meeting Parameter: Details
Meeting Date: December 10, 2025
Start Time: 11:30 a.m. IST
End Time: 2:50 p.m. IST
Duration: 3 hours 20 minutes
Primary Decision: Fundraising approval up to ₹150.00 crores

The company has indicated this decision continues from an earlier intimation dated December 7, 2025, suggesting ongoing strategic planning and board deliberations. The proposal requires necessary regulatory and statutory approvals as required under applicable laws, along with shareholder approval that will be sought separately at an appropriate time.

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Fermenta Biotech Approves ₹110 Crore Investment for Dahej Facility Expansion

2 min read     Updated on 10 Dec 2025, 07:58 PM
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Reviewed by
Jubin VScanX News Team
Overview

Fermenta Biotech's Board approved a ₹110 crore investment to expand its Dahej facility with commercial-scale production of patented plant-based Vitamin D3, specialized derivatives including Calcifediol, and green chemistry enzymes like CAL-B Lipase and PGA. The phased implementation across FY26-FY27 will establish significant capacity additions positioning the company as a leader in sustainable pharmaceutical manufacturing and vegan-compliant nutritional ingredients.

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*this image is generated using AI for illustrative purposes only.

Fermenta Biotech has announced a major expansion initiative with the approval of a ₹110.00 crore investment to enhance its manufacturing capabilities at the Dahej facility. This strategic investment represents the company's commitment to advancing sustainable pharmaceutical manufacturing and expanding its product portfolio in high-growth segments. The Board of Directors approved this comprehensive investment program during their meeting on December 10, 2025.

Investment Overview

The approved investment will focus on expanding the Dahej facility's capacity and capabilities across three critical areas of pharmaceutical manufacturing:

Investment Parameter: Details
Total Investment: ₹110.00 crores
Implementation Timeline: FY26 and FY27
Facility Location: Dahej, Gujarat
Focus Areas: Plant-based Vitamin D3, Derivatives, Green Chemistry Enzymes
Financing Mode: Internal accruals/Debt

Strategic Focus Areas

Plant-Based Vitamin D3 Production

The expansion will establish commercial-scale manufacturing for plant-based Vitamin D3, a breakthrough innovation for which Fermenta has recently received process patent protection in India. The facility will have a proposed capacity of approximately 1 tonne of plant-based Vitamin D3 per annum, requiring an investment of around ₹60.00 crores. This pioneering development positions Fermenta among the first companies globally to commercialize sustainable plant-derived Vitamin D3, addressing the rapidly growing market demand for vegan-compliant and sustainable nutritional ingredients.

Vitamin D3 Derivatives Manufacturing

The enhanced facility will focus on manufacturing various Vitamin D3 derivatives, including Calcifediol, with a proposed capacity of 50 kg per annum. This novel Vitamin D3 analog represents the next generation of Vitamin D metabolites with enhanced clinical relevance for bone health and therapeutic applications. The company has successfully developed technologies for manufacturing Vitamin D3 derivatives, and the commercialization will help add high-value formats to its global portfolio.

Green Chemistry Enzymes Development

The expansion includes significant capacity addition for green chemistry enzymes, specifically CAL-B Lipase and Penicillin G Acylase (PGA), with a fermentation capacity of approximately 75 KL requiring an investment of around ₹50.00 crores. Fermenta's competitive differentiation stems from its pioneer status as India's first PGA manufacturer since 1986, with proprietary Novel PGA (NPGA) technology delivering industry-leading conversion rates for amoxicillin and ampicillin synthesis.

Capacity Specifications

The detailed capacity additions across different product segments are structured as follows:

Product Category: Proposed Capacity Investment Required
Plant-based Vitamin D3: ~1 tonne per annum ₹60.00 crores
Vitamin D3 Derivatives: ~50 kg per annum Included in above
Green Chemistry Enzymes: ~75 KL fermentation capacity ₹50.00 crores

Market Positioning and Strategic Impact

This expansion initiative positions Fermenta Biotech to capitalize on multiple high-growth market segments. The plant-based Vitamin D3 production addresses the fast-growing vegan and sustainable nutrition megatrend, while the enzyme platform addresses the pharmaceutical industry's urgent need for sustainable biocatalytic processes. The capacity expansion aligns with Indian companies' investments in penicillin G and semi-synthetic penicillin manufacturing under the Production Linked Incentive (PLI) scheme.

According to Managing Director Prashant Nagre, this investment represents a decisive step in Fermenta's strategic evolution as a leader in complex, science-validated manufacturing at scale, leveraging the company's DBT-approved R&D Excellence Centre and global-scale manufacturing capabilities.

Historical Stock Returns for Fermenta Biotech

1 Day5 Days1 Month6 Months1 Year5 Years
+6.52%+21.02%+19.68%-4.46%-21.91%-7.26%
Fermenta Biotech
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