This microcap stock has a market cap of Rs. 529 crore and is trading at Rs. 89.60 on Tuesday, up 4.2% from Monday’s closing price of Rs. 86.00. The company announced approval of the merger earlier today and the stock trades 27% away from its 52 week high.

The company’s stock is 11% away and 13% above from its 20 day and 200 day moving averages respectively witnessing 3x weekly average volumes today. 

In a filing dated 26th September 2023, Ind-Swift Laboratories Ltd (“Ind-Swift Labs”) announced that the Board of Directors, in their meeting held on 25th September, 2023, has considered and approved the scheme of arrangement for amalgamation of Ind-Swift Ltd (“Transferor Company”) with Ind Swift Laboratories Limited, on a going concern basis.

Fairness Opinion dated 25 th September, 2023 issued by 3 Dimension Capital Services Limited, SEBI Registered, Category-I, Merchant Banker on the Share Exchange Ratio, recommended by the registered valuer under the Valuation Report, has also been received by the Company.

Under the transaction, shareholders of Ind-Swift Ltd will receive 100 shares of Ind-Swift Labs with face value of Rs. 10 for every 655 shares of face value Rs. 2.

Ind-Swift Ltd is primarily engaged in interalia in the business of manufacturing and marketing of Active Pharmaceutical Ingredients (APIs), Intermediates and Finished Dosages. It has recently entered a slump sale transaction with a Company namely Synthimed Labs Private Limited to sell its API and CRAMs business which is yet to be completed.

The proceeds of the said sale shall be used primarily to repay its debt and to discharge other financial obligations. Post the completion of this transaction, the Ind-Swift Ltd will be left with surplus cash along with some residual business i.e. Finished Dosages Forms (FDF) Business. 

The rationale for the amalgamation is that Ind-Swift Labs is also engaged in the manufacturing of Pharmaceutical Products including FDF and amalgamation of it with Ind-Swift Ltd will create a synergy benefit.

Wherein the resultant entity will see benefits in the form of – Debt Repayment, Strengthened Competitive Position, Consolidation of Businesses, Value Addition and Shareholder Value, Operational Rationalization and Efficiency, Enhanced Growth Prospects, Improved Control and Governance, Footprints in Formulation Business, 

Written by Sandeep R


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