Pharmaceutical company SeQuent Scientific Ltd said on Friday it has agreed to acquire a 51 per cent stake in Indo Phyto Chemicals Pvt Ltd for Rs 6.85 crore ($1 million) in cash to enter the female healthcare segment.
Indo Phyto’s promoters will retain a 49 per cent stake in the New Delhi-based company, SeQuent said in stock-exchange filing. They will also join SeQuent’s management, it added.
Manish Gupta, managing director at SeQuent, said Indo Phyto’s product portfolio will help the company enter the next orbit of growth.
The transaction is subject to customary closing conditions.
Shares of SeQuent Scientific jumped 10 per cent on the news to close at Rs 861.50 apiece in a Mumbai market that gained 2 per cent.
Indo Phyto makes steroids and hormonal bulk drugs focused on female healthcare at its manufacturing facility in Uttarakhand. It produces 14 bulk drugs and has a 20 drugs under development. It had revenue of Rs 67.5 crore in the fiscal year ended on March 31, 2015.
Mumbai-based SeQuent has seven manufacturing facilities in India and Turkey. The company operates in the domain of animal health (bulk drugs and formulation), niche human health and analytical services. It operates its animal health business through unit Alivira Animal Health.
In November 2015, a step-down subsidiary of SeQuent had agreed to acquire Turkey’s Topkim Premiks San at an enterprise value of about $7.2 million (Rs 47 crore) to strengthen its animal healthcare business.