Torrent Pharma has stepped up efforts to tie up funds as it closes on the acquisition of Cipla, which will catapult the Ahmedabad-based company to India’s No. 2 drug maker by revenues.

Latest reports indicate the Mehtas of Torrent Pharma are in talks with Apollo Global Management to secure funding of up to $1 billion for the proposed deal.

A Reuters report said it is looking to secure $3-4 billion in financing and has also been in talks with other players such as CVC Capital Partners and Bain Capital which may become equity partners in a consortium. This comes even as Blackstone is also interested in acquiring the promoter’s stake which they are looking to sell. However, the latest buzz is that the private equity giant is not proceeding with the deal. During the quarter ended June 30, the Hamieds held 33.47 per cent of Cipla, worth Rs 33,500 crore at the current market price.

If the proposed deal is successful, the buyer will have to make an open offer to buy 26 per cent from the public shareholders. Assuming full acceptance of the open offer, the total acquisition cost will come to Rs 59,500 crore or $7 billion.

Analysts at Jefferies recently said the Mehtas will use their company to acquire the Cipla stake rather than them buying the stake.

Torrent Pharma could raise equity to fund the deal which could result in the promoter stake diluting to 51 per cent from 71 per cent.