Shilpa Medicare approves Rs 325 crore rights issue, amalgamation of subsidiary with itself

Additionally, the board has also approved the amalgamation of Shilpa Therapeutics with itself. Shilpa Therapeutics is a wholly-owned subsidiary of Shilpa Medicare and that the merger does not fall under the purview of related party transactions.

Shilpa Therapeutics is in the business of manufacturing Orally dispersible films (ODF). It has a manufacturing unit with in Dabaspet, Bengaluru, which manufacturers ODF and Transdermal patches. The merger is being done to consolidate the operational synergies and the cost, according to Shilpa Medicare, who also said that the merger will enhance the growth of the business and attain objectives in a more efficient manner.

The merger will have no impact on the shareholding pattern of the listed entity, Shilpa Medicare said.

Shares of Shilpa Medicare are trading 0.6 percent lower at Rs 252.55. The stock is down 10 percent on a year-to-date basis.