Vivimed Labs has signed definitive agreements to facilitate an investment of USD 42.5 million by OrbiMed Asia into the company's subsidiary, Vivimed Labs Mascarene, the holding entity of the company's API business, UQUIFA.

The proceeds of this fund raise will be utilized by the company primarily for Debt reduction and optimization of capital structure at the parent entity level and investment in the API business for capacity augmentation and organic growth.

Shares of the company gained Rs 1.35, or 0.98%, to trade at Rs 138.60. The total volume of shares traded was 81,801 at the BSE (9.42 a.m., Tuesday).