ChrysCapital-backed pharmaceutical major Ipca Laboratories Ltd is acquiring 50 per cent of Gujarat-based Avik Pharmaceuticals Ltd for Rs 6.51 crore (around $1.04 million), the company informed the stock exchange on Monday.
“Ipca would acquire 50 per cent of Avik partly through purchase of equity shares from its existing shareholders and partly through subscription to its fresh equity share capital on a preferential allotment basis,” the company announced in the filing.
Avik, which was founded in 1979, makes active pharmaceutical ingredients (APIs) such as male and female hormones and steroids among others at its manufacturing facility based in Vapi, Gujarat.
This development fits with the core strategy of inorganic expansion of the company. In 2011, Ipca acquired 100 per cent stake in UK-based Onyx Research Chemicals, holding company of Onyx Scientific Ltd for Rs 34 crore.
Earlier this year, PE major ChrysCapital picked up 4 per cent stake in the company for $40 million.
The company has been looking at growing its overseas business for growth. For Q2 FY14, Ipca reported a 10 per cent increase in net revenue at Rs 852 crore. The firm posted net profit of Rs 129 crore while its exports income grew 11 per cent to Rs 518 crore.
The scrip of Ipca opened at Rs 682 on Monday morning and gained 2.85 per cent to close at Rs 683.05.
(Edited by Joby Puthuparampil Johnson)