The conference call was on 9th Nov. After that ~3 months have passed. Management has Q3 results and might have already sensed the trajectory for Q4 results.
EBITDA accrual might be way lesser than management’s expectation due to ongoing downward pricing pressure, which was confirmed by Divi’s and Alembic Pharma’s management for the Q3 results, in the US market.
EBITDA/Debt ratio was already stretched. Now, this might be on the verge of violating debt conditions. Hence, the need of additional equity.
In the upcoming call, above is the rationale I expect to hear from the management.
Disc: No investment.
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