Prakash Mody, CMD, Unichem Laboratories in an interview to CNBC-TV18 denied all the rumours of stake sale of its domestic formulation business. In fact, the company was looking at growing all aspect of the business, said Mody.As per some newspaper reports Unichem was looking at selling stake in its domestic formulation business and the proposal for the sale was at preliminary stage. The proposal was being studied by large strategic investors and PE firms. The valuation for business was touted at USD 1.2 billionHowever, he agreed that there are always potential buyers for a good business but as of now the company was not looking at selling any stake.Moreover, he expected the second quarter numbers to be good and the company to post double-digit growth in the next couple of quarters.Commenting on the valuation of the domestic formulation business, Mody said he would be very happy if the valuation of the business was even more than USD 1-2 billion.
Below is the verbatim transcript of the interview.
Sonia: Can you confirm to us whether indeed you are looking to sell a part of your domestic formulations business and whether you are in talks at this point?
A: Absolutely not, as a matter of fact all this has come out of total speculation and rumour. We totally deny that we are doing anything like this.
Reema: Have you at least been approached by other entities for perhaps buying your domestic formulation business?
A: You have to understand that in the pharmaceutical business today, there are all kinds of approaches because people do feel everybody wants to increase their market share. So, if they feel companies are good or they are interested in strategic tie-ups these talks keep on taking place. As long as there is nothing serious and nothing out of it, there is no point in making any comments.
Reema: You have been approached by potential buyers but you are not interested in selling stake?
A: Absolutely. As a matter of fact, we are increasing your business, we have restructured our domestic business, we have added more divisions and we should be able to even report good numbers as time is passing.
Sonia: So for all those suitors who are perhaps watching your business closely what exactly is the growth in the domestic formulations business and what would the business we valued at currently?
A: I cannot tell you what the business would be valued at. However, today the fact is that we should be looking at double digit growth hopefully in the next couple of quarters.
Sonia: Is there any truth to talks that the business itself could be valued to the tune of about USD 1-1.5 billion? You just have to say yes or no?
A: I can only hope and pray that it can be valued even more. Today we are not looking at that perspective.
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