Strides Pharma Science Ltd shares jumped more than five percent on Thursday after the company announced an internal restructuring under which it is acquiring a step-down subsidiary.
The company informed the bourses that its board on September 7 approved the acquisition of 100 percent shareholding in Strides Pharma Services Private Limited (SPSPL).
SPSPL is a wholly-owned subsidiary of Arco Lab Pvt Ltd, which is a direct arm of Strides Pharma. Strides Pharma is acquiring SPSPL for a cash consideration of Rs 5 lakh, based on the valuation determined by an independent valuer, to make it a direct subsidiary.
SPSPL was incorporated on July 11, 2022. It was formed to provide business support services for pharmaceutical and biopharmaceutical sector, within India and across the world. The company had nil revenue in FY23.
Strides Pharma clarified that promoter or promoter group of the company do not have any interest in the proposed transaction.
The company expects the transaction to be completed by September 15, 2023. The proposed acquisition will not have any impact on a consolidated basis.
Strides early this month had announced the resignation of its Vice President and Head of Corporate Development and Strategy, Ankit Gupta.
Strides last month approved the merger of its another wholly-owned subsidiary Vivimed Life Sciences Pvt Ltd with the company.
Shares of the company rose nearly 5.5 percent on Thursday to hit a high of Rs 485.50 apiece on BSE, nearing its 52-week high of Rs 488.85 hit on August 1, 2023.
The stock has rebounded around 81 percent from its 52-week lows of Rs 268.40 hit on March 21, 2023 while in the past year Strides Pharma shares have gained around 41 percent.
(Edited by : Asmita Pant)
First Published: Sept 7, 2023 4:20 PM IST
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