Synopsis:
The company hit the lower circuit after announcing the ₹1,270 crore sale of its core API and formulations business. The strategic shift aims to reduce debt, fund growth, and realign operations toward innovation and long-term value creation.
The shares of the prominent antibiotics medicines manufacturer hit 20 percent lower circuit of Rs 18.53 apiece after the company announced the strategic Sale of its API and Formulations Business to Ceph Lifesciences for ₹1,270 crores.
With a market capitalization of Rs 415.56 crore, the shares of Nectar Lifesciences Ltd were trading at Rs 18.53 per share, decreasing around 19.99 percent as compared to the previous closing price of Rs 23.16 apiece.
The shares of Nectar Lifesciences Ltd have seen bearish movement after announcing a definitive Business Transfer Agreement to sell its core API and formulations business to Ceph Lifesciences for Rs 1,270 crore on a slump sale basis. The divestment marks a significant strategic shift, raising concerns among investors about the company’s future direction and revenue stability post-sale.
Nectar Lifesciences has also signed an Asset Purchase Agreement to sell its menthol business to Ceph Lifesciences for ₹20 crore. These moves are part of a strategic overhaul aimed at debt reduction, exploring new business areas, rewarding shareholders, and funding future growth, enhancing long-term value creation.
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Mr. Sanjiv Goyal, Promoter and Chairman of Nectar Lifesciences, commented: “This transaction marks a significant milestone in Nectar Lifesciences’ evolution. By divesting mature segments of our business, we are laying the foundation for a focused and agile organization geared towards innovation and long-term value creation. We thank our stakeholders for their continued trust and support as we embark on this next chapter.”
Looking forward to the company’s financial performance, revenue increased by 0.4 percent from Rs 452.17 crore in Q4FY24 to Rs 454.98 crore in Q4FY25. Further, during the same time frame, net profit increased by 399 percent from Rs 1.57 crore to Rs 7.84 crore.
Nectar Lifesciences operates four advanced manufacturing facilities across Punjab and Himachal Pradesh. These include two API units in Derabassi producing oral and sterile cephalosporin APIs, and two units in Barotiwala for cephalosporin formulations and hard gelatin capsules. Backed by 29 years of excellence, these facilities highlight the company’s robust manufacturing capabilities in antibiotics and pharmaceutical formulations.
Nectar Lifesciences Limited is an India-based pharmaceutical company. The Company’s business areas include active pharmaceutical ingredients (APIs) and intermediates, formulations/finished dosage formulations (FDF), menthol and mint derivatives, and empty hard gelatin capsules.
Written by Abhishek Singh
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