Piramal Pharma has received the green light from capital markets regulator Securities and Exchange Board of India (Sebi), to raise up to Rs 1,050 crore through a rights issue of shares. The company, which had submitted its draft papers to Sebi in March, received the observation letter from the regulatory body on July 12, as revealed in the latest update.

Sebi’s observation signifies its approval for public offerings, including initial public offerings (IPOs) and rights issues. As per the draft papers, Piramal Pharma plans to offer fully paid-up equity shares through a rights issue to its existing eligible shareholders, with the aim of raising funds totaling up to Rs 1,050 crore. The proceeds from the rights issue will be utilized to repay debt and for general corporate purposes.