As per the scheme of amalgamation 552 shares of Neuland Laboratories will be offered for every 1000 shares of NHSPL.
Steadview Cap, Malabar Funds and Ronnie Screwvala together have acquired 32.89 percent stake in Neuland Health Science Pvt Ltd. (NHSPL), the holding company of Hyderabad-based Neuland Laboratories, reports CNBC-TV18.
The financial details of the deal are yet to be disclosed.
The three parties are buying out healthcare-focused private equity firm - InvAscent's 32.89 percent stake. The company provides private equity growth capital to companies in the Indian pharmaceutical, healthcare and medtech industries.
Neuland group is in the process merging its holding company NHSPL and the listed company Neuland Laboratories.
As per the scheme of amalgamation 552 shares of Neuland Laboratories will be offered for every 1000 shares of NHSPL. Post amalgamation, Steadview Cap, Malabar Funds and Ronnie Screwvala will hold 20 percent stake in Neuland Laboratories.
The deal is likely to conclude by second quarter of FY18.
According to a source-based report in the Livemint, InvAscent has hired the investment banking arm of IDFC Bank to advise it on the stake sale. The report also said that the PE firm could get nearly Rs 150-200 crore from the stake sale.
Neuland Laboratories is into active ingredients and contract research and manufacturing services (CRAMS) - outsourcing research services/manufacturing products to low-cost providers. The company ended FY17 with revenues of Rs.574 crore and net profit of Rs.33 crore.Shares of Neuland Laboratories dropped 1.94 percent to Rs.1412.55 on BSE at 12.55 pm, the benchmark Sensex declined 0.04 percent was trading at 30,422.65.