Wockhardt Seeks Shareholders' Nod for Financial Flexibility

Drug maker Wockhardt is seeking shareholders' nod for permission to invest, provide loans or give guarantee for up to Rs 3,000 crore to achieve greater financial flexibility and optimal financing structure.

The company is also seeking shareholders' approval via postal ballot to re-appoint Habil Khorakiwala as chairman of the company for a tenure of five years with effect from March 1, 2015 to February 29, 2020

"As a measure of achieving greater financial flexibility and to enable optimal financing structure, this permission is sought...to give powers to the board for making further investment, providing further loans or give guarantee or provide security for an amount not exceeding Rs 3,000 crore," Wockhardt Ltd said in a filing to the BSE.

Khorakiwala was re-appointed as Chairman of the company for a tenure of five years with effect from March 1, 2010 to February 28, 2015.

"The tenure of his appointment is ending on February 28, 2015 and it is proposed to re-appoint him as a Chairman of a company for a further period of five years with effect from March 2015 to February 29, 2020," the company said.

Besides, the company is also seeking shareholders' approval to shift the company's registered office from Mumbai to Aurangabad.

"To exercise better administrative and economic control which will reduce overheads, rationalise costs and enable the company to streamline its operations as well as management of affairs of the company, it is proposed to shift the registered office from Mumbai to Aurangabad," it said.

Wockhardt shares closed at Rs 1,508 apiece on the BSE, down 1.69 per cent from their previous close.