SMS Lifesciences gains 5% on deal to divest partial stake in Mahi Drugs
According to the agreements, SMS Lifesciences will divest up to 10 per cent shareholding in Mahi Drugs and raise fresh equity in the company through the private placement route.
By Bhaskar Dutta, ETMarkets.com |
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NEW DELHI: Shares of SMS Lifesciences India climbed close to 5 per cent in early trade on Wednesday after the company executed a share purchase agreement and a share-subscription agreement with Chemworth Inc. USA, strategic investor and associates on Monday.
The counter rose to a high of Rs 871.80 against the previous close of Rs 832.45 on the NSE.
According to the agreements, SMS Lifesciences will divest up to 10 per cent shareholding in Mahi Drugs and raise fresh equity in the company through the private placement route, reports said.
SMS Lifesciences had informed its board of directors of the decision on November 30, 2021.
Once the transactions have been completed, Mahi Drugs will cease to be a wholly-owned subsidiary of SMS Lifesciences. But shall continue as a Subsidiary Company with a 60 per cent stake of the post issued capital, SMS Lifesciences had said in a statement to bourses. The proposed transaction is seen augmenting value for various stakeholders.
In July-September, SMS Lifesciences reported a consolidated total income of Rs 87.42 crore, up 14.52 per cent from the previous quarter’s total income of Rs 76.34 crore and up 40.91 per cent over the same period a year ago. The company reported a net profit after tax of Rs 10.25 crore for the quarter under review.
The Hyderabad-based company is a prominent player in the manufacturing of active pharmaceutical ingredients and intermediates.
The counter rose to a high of Rs 871.80 against the previous close of Rs 832.45 on the NSE.
According to the agreements, SMS Lifesciences will divest up to 10 per cent shareholding in Mahi Drugs and raise fresh equity in the company through the private placement route, reports said.
SMS Lifesciences had informed its board of directors of the decision on November 30, 2021.
Once the transactions have been completed, Mahi Drugs will cease to be a wholly-owned subsidiary of SMS Lifesciences. But shall continue as a Subsidiary Company with a 60 per cent stake of the post issued capital, SMS Lifesciences had said in a statement to bourses. The proposed transaction is seen augmenting value for various stakeholders.
In July-September, SMS Lifesciences reported a consolidated total income of Rs 87.42 crore, up 14.52 per cent from the previous quarter’s total income of Rs 76.34 crore and up 40.91 per cent over the same period a year ago. The company reported a net profit after tax of Rs 10.25 crore for the quarter under review.
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The Hyderabad-based company is a prominent player in the manufacturing of active pharmaceutical ingredients and intermediates.
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