&w=3840&q=100)
Nectar to sell API, formulations and menthol biz to Ceph for ₹1,290 cr
The company has signed a definitive Business Transfer Agreement (BTA) for the sale of its core business division, comprising the manufacture, distribution, and marketing of Active Pharmaceutical Ingredients (APIs) and formulations to Ceph Lifesciences for ₹1,270 crore on a slump sale basis, Nectar said in a regulatory filing.
Additionally, the company has entered into an Asset Purchase Agreement (APA) for the sale of its menthol business assets to Ceph Lifesciences for ₹20 crore, marking a comprehensive restructuring move aligned with its future strategy, it added.
"By divesting mature segments of our business, we are laying the foundation for a focused and agile organisation geared towards innovation and long-term value creation," Nectar Lifesciences Promoter and Chairman Sanjiv Goyal said.
Nectar Lifesciences said the transaction forms a part of its long-term strategy to streamline operations, strengthen its financial position, and unlock value for shareholders.
"The proceeds from the sale will be used to repay existing debt, invest in new and emerging business areas and reward shareholders, subject to applicable approvals," the company said.
Besides, the proceeds will also be used to fund future corporate and growth initiatives, it added.
The transaction is expected to be completed on or before September 20, subject to customary approvals, the filing said, adding there would be no change in the company's existing shareholding.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Standard
5 days ago
- Business Standard
Nectar Life slumps on selling core pharma business to Ceph Lifesciences for Rs 1,270 Cr
Nectar Lifesciences plunged 17.75% to Rs 19.05 after the company announced a major strategic move, selling its core business division to Ceph Lifesciences for Rs 1,270 crore. The deal, executed on a slump sale basis, includes the manufacture, distribution, and marketing of APIs (active pharmaceutical ingredients) and formulations. As part of the broader restructuring, Nectar has also signed an asset purchase agreement to divest its menthol business assets to Ceph Lifesciences for an additional Rs 20 crore. The transaction, expected to be completed by 20 September 2025, is subject to shareholder approval at an extraordinary general meeting scheduled for August 4. According to the company, this sale marks a significant pivot toward becoming a more focused and innovation-driven enterprise. Proceeds from the deal will be used to repay existing debt, invest in emerging opportunities, potentially reward shareholders and fund future growth initiatives. The buyer, Ceph Lifesciences, is a non-promoter entity with no impact on Nectar's existing shareholding pattern post-transaction. 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." Nectar Lifesciences is a pharmaceutical company focused on research-driven innovation, manufacturing, and global distribution. The company will announce Q4 results on 7 July 2025. On a consolidated basis, net profit of Nectar Lifescience soared 399.36% to Rs 7.84 crore while net sales rose 0.48% to Rs 454.33 crore in Q3 December 2024 over Q3 December 2023.
Economic Times
5 days ago
- Economic Times
Nectar to sell API, formulations & menthol biz to Ceph Lifesciences for Rs 1,290 cr
Synopsis Nectar Lifesciences will sell its active pharmaceutical ingredients, formulation, and menthol business assets to Ceph Lifesciences for ₹1,290 crore. This strategic move involves a Business Transfer Agreement for the core API and formulation business at ₹1,270 crore and an Asset Purchase Agreement for the menthol business at ₹20 crore. Reuters Representative image Nectar Lifesciences Ltd on Tuesday said it will sell its active pharmaceutical ingredients and formulation along with menthol business assets to Ceph Lifesciences Pvt Ltd, for Rs 1,290 crore. The company has signed a definitive Business Transfer Agreement (BTA) for the sale of its core business division, comprising the manufacture, distribution, and marketing of Active Pharmaceutical Ingredients (APIs) and formulations to Ceph Lifesciences for Rs 1,270 crore on a slump sale basis, Nectar said in a regulatory filing. Additionally, the company has entered into an Asset Purchase Agreement (APA) for the sale of its menthol business assets to Ceph Lifesciences for Rs 20 crore, marking a comprehensive restructuring move aligned with its future strategy, it added. "By divesting mature segments of our business, we are laying the foundation for a focused and agile organisation geared towards innovation and long-term value creation," Nectar Lifesciences Promoter and Chairman Sanjiv Goyal said. Nectar Lifesciences said the transaction forms a part of its long-term strategy to streamline operations, strengthen its financial position, and unlock value for shareholders. "The proceeds from the sale will be used to repay existing debt, invest in new and emerging business areas and reward shareholders, subject to applicable approvals," the company said. Besides, the proceeds will also be used to fund future corporate and growth initiatives, it added. The transaction is expected to be completed on or before September 20, 2025, subject to customary approvals, the filing said, adding there would be no change in the company's existing shareholding.
Mint
5 days ago
- Mint
Nectar Lifesciences soars around 20%, hits 52-week low after announcing ₹1,270 crore biz sale to Ceph Lifesciences
Shares of Nectar Lifesciences Ltd. plunged nearly 20 percent in intra-day trading on Tuesday, July 8, hitting a fresh 52-week low of ₹ 18.60. The sharp decline came after the company announced the strategic sale of its core Active Pharmaceutical Ingredients (API) and formulations business to Ceph Lifesciences for ₹ 1,270 crore, in a slump sale transaction. In a regulatory filing, the company confirmed that it had signed a definitive Business Transfer Agreement (BTA) with Ceph Lifesciences Private Limited for the transfer of its core operations involving manufacturing, distribution, and marketing of APIs and formulations. The total consideration for the transaction stands at ₹ 1,270 crore. Additionally, Nectar Lifesciences also signed an Asset Purchase Agreement (APA) for the sale of its menthol business assets to the same buyer for ₹ 20 crore. The transaction is part of a broader long-term strategy aimed at streamlining operations and repositioning the company for future growth. Nectar Lifesciences said the proceeds from the business divestiture will be used to repay existing debt, invest in new and emerging areas, reward shareholders (subject to regulatory approvals), and fund future corporate growth initiatives. By exiting mature and capital-intensive business segments, the company seeks to unlock shareholder value and reposition itself for innovation-driven expansion. Commenting on the development, Mr. Sanjiv Goyal, Promoter and Chairman of Nectar Lifesciences, stated: '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.' According to the company's official disclosure: Buyer: Ceph Lifesciences Private Limited (a third-party, non-promoter entity) Consideration: ₹ 1,270 crore for the core API and formulations business; ₹ 20 crore for menthol business assets Completion Timeline: On or before September 20, 2025, subject to customary regulatory and shareholder approvals Shareholding Pattern: The deal will not result in any change to the company's existing shareholding structure. The Board of Directors of Nectar Lifesciences approved the deal on July 7, 2025, and an Extraordinary General Meeting (EGM) has been scheduled for August 4, 2025, to seek shareholder approval. Following the announcement, investor sentiment turned sharply negative. The stock plummeted 19.6 percent to a 52-week low of ₹ 18.60. It is now trading nearly 67 percent below its 52-week high of ₹ 56.39, which it had touched in September 2024. Over the past one year, the stock has shed more than 26 percent of its value. In the current month alone, the stock is down over 14 percent after recording an 18 percent loss in June. Notably, the counter had gained 23 percent in May but had remained under pressure in the first four months of the calendar year, registering declines of 4 percent in April, 13 percent in March, 22 percent in February, and 13 percent in January. Nectar Lifesciences Ltd. is a BSE and NSE-listed pharmaceutical company known for its research-driven approach and global distribution of high-quality APIs and finished formulations. The company has a long-standing focus on operational excellence and value creation. The current transaction marks a pivotal shift in Nectar's strategic roadmap as it pivots toward higher-value and possibly less capital-intensive verticals in the healthcare space.
