Shilpa Medicare Limited announced that it has entered into a Share Purchase Agreement and Shareholders’ Agreement with Ash Ingredients Inc. and Varcatalyst LLP to sell 31% of its stake in Sravathi Advance Process Technologies Pvt. Ltd. for a consideration of ₹49.6 crore, marking a major step toward expanding strategic partnerships and financial collaboration.
Following the transaction, Shilpa Medicare’s shareholding in Sravathi will reduce from 65% to 34%, while the technocrat shareholders will continue to hold 35%, and the new investors — Ash Ingredients Inc. and Varcatalyst LLP — will acquire 22% and 9%, respectively.
The deal aims to bring in strategic and financial partners to strengthen Sravathi’s research and advanced process technology business. The company, engaged in developing differentiated process technologies and R&D solutions, will now benefit from the expertise and capital infusion of its new partners.
Key Terms and Structure
Under the terms of the agreement, both Ash Ingredients Inc. and Varcatalyst LLP will have the right to appoint one director each to Sravathi’s board. The existing Joint Venture Agreement dated June 7, 2019, between Shilpa, Technocrats, and Sravathi will stand superseded once the deal closes.
Shilpa clarified that the transaction does not fall under related party transactions and will not impact its management control or governance structure. The agreements were signed in accordance with Regulation 30 of SEBI (LODR) Regulations, 2015.
Strategic Significance
The entry of new investors marks an important milestone in Sravathi’s growth journey, enabling it to pursue advanced technology development, R&D expansion, and global collaborations. The transaction underscores Shilpa Medicare’s ongoing efforts to unlock value from its subsidiaries while fostering strategic partnerships for scaling innovation-driven ventures.
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