Strides Arcolab sells 25.1% stake in arm to GMS Holdings; stock up

MUMBAI: Pharmaceutical company Strides Arcolab has entered into an agreement with GMS Holdings (GMS) to sell 25.1 per cent stake in Stelis Biopharma (Stelis), biotech arm of Strides, for $21.90 million.

The transaction is expected to close in Q4 of 2014 and will be used to its greenfield project.

Strides has so far invested $16.9 million in Stelis. The duo will invest $61.9 million taking total equity investment in Stelis to $78.8 million.

GMS will initially invest $8.5 million and remaining $13.40 million in tranches based on project and product development needs over a period of 2 years.

With the total equity infusion of USD 78.8 Million and credit line of USD 40 Million, no further funding will be required till commercialization.

At 10:45 a.m.; Strides Arcolab was at Rs 728, up 3.71 per cent, on the BSE. It touched a high of Rs 748.35 and a low of Rs 718 in trade today.