Custom research and manufacturing services provider Sequent Scientific Ltd plans to sell its specialty chemicals business on a slump sale basis, as per a stock market disclosure.
"The board of directors of the company has approved the transfer of specialty chemicals division along with all related assets and liabilities of the company by way of slump sale to any company/entity/or any other person," the company said in the disclosure. The transfer of the business is subject to the approval of the shareholders of the company.
Bangalore-headquartered Sequent, a fully integrated pharmaceutical company, seek to develop products and services that meet the requirements of industries like pharmaceuticals, agro-chemicals, plastics and personal care (cosmetics). It operates in three segments: pharmaceuticals, speciality chemicals and analytical services.
The pharmaceuticals segment comprises human and animal active pharmaceutical ingredients (APIs), veterinary formulations and contract research and manufacturing services (CRAMS) and the company's APIs in human health sector include Albendazole, Lumefantrine, Midazolam, Artesunate, Efavirenz, Frusemide and Miconazole Nitrate.
The firm has seven manufacturing facilities located in Karnataka, Gujarat and Maharashtra.
In August 2013, Agnus Capital, a private investment arm of the promoters of public listed drug maker Strides Arcolab, invested $2.86 million to pick 6.21 per cent stake in Sequent. A month earlier, Shasun Pharma and Sequent signed a letter of intent to form a joint venture firm, of which 73 per cent would be owned by Sequent and 27 per cent by Shasun, to develop, manufacture and sell veterinary products, including APIs and formulations in the global market.
Shares of Sequent were trading at Rs 187, down 1.03 per cent, in a mid-day market on Friday.
(Edited by Joby Puthuparampil Johnson)