Share price of this pharma stock moved up by nearly 12.85% to Rs. 712.0 in the morning trading session of March 1st, compared to its previous close of Rs. 630.9, after the company announced a proposed scheme of amalgamation for the merger.
With a market capitalisation of Rs. 17,262 crores, at 11:19 a.m. the shares of Suven Pharmaceuticals Ltd. were trading in the green at Rs. 679.85, up by 8.02 percent.
In the last one year, the company has delivered positive returns of about 42.8 percent and nearly 32.41 percent of returns in the last six months. So far in 2024, it has given negative returns of more than 5.45 percent.
According to recent regulatory filings with the stock exchanges, Suven Pharmaceuticals Limited and Cohance Lifesciences Limited have announced a proposed scheme of amalgamation for the merger of Cohance with Suven.
A conference call will be held on March 5th to discuss the proposed merger, and the expected time to conclude the overall transaction is within the next 12 to 15 months, subject to receipt of all necessary shareholder and regulatory approvals, as specified in the filings.
Cohance Lifesciences, a leading Contract Development and Manufacturing Organization (CDMO) and merchant API platform, provides a comprehensive range of products and services across all phases of a molecule’s lifecycle.
This merger will benefit and improve Suven’s CDMO industry leadership position with niche capabilities and scale benefits, as well as access to multiple GMP facilities and growth opportunities in multiple business units.
Further, following the scheme’s implementation, all Cohance’s shareholders will be issued shares of Suven at a ratio of 11 shares of Suven for every 295 shares of Cohance, as per the swap ratio.
Advent International, a global private equity firm, had initiated the merger process for its portfolio companies Suven Pharma and Cohance Lifesciences, with Kotak Mahindra Capital and Citigroup Global Markets serving as financial advisors for transaction aspects such as swap ratio and fairness opinion.
In terms of financials, the revenue from operations of the company reduced by nearly 4.76 percent QoQ from Rs. 231 crore in Q2 FY23-24 to Rs. 220 crore in Q3 FY23-24.
The net profit of the company also decreased by around 41.25 percent QoQ, from Rs. 80 crore in Q2 FY23-24 to Rs. 47 crore in Q3 FY23-24.
Incorporated in 2018, Suven Pharmaceuticals Limited is India’s leading innovator-focused, integrated Pharma & Specialty Chemical CDMO Company.
The company specialises in Custom Synthesis, Process R&D, Scale Up and Contract Manufacturing of intermediates, APIs and Formulations.
Written by Shivani Singh
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