Ind-Swift Laboratories will sell its Active Pharmaceutical Ingredients (API) business to PI Industries for an enterprise value of Rs 1,530 crore.
In a press release, the pharmaceutical company intimated the sale has been approved by its board of directors on July 30 and will be completed on shareholder approvals.
The API business had a turnover of Rs 856.58 crore for FY21, constituting 100 percent of the company’s consolidated revenue for the fiscal. Its net worth is Rs 289.99 crore as of March 2021.
The sale is expected to close on October 21, 2021, subject to approvals and closing conditions. “The company will intimate the stock exchanges once the sale is completed,” the release added.
The company said rationale for the slump sale is to raise funds, facilitate repayment of all existing debt exposure and making Ind-Swift debt free, and utilising surplus funds for strategic investments and acquisitions to enhance stakeholder value in the long run.