Alkem Laboratories has recently informed exchanges that the company will transfer its trade generics business to its subsidiary, Alkem Wellness Ltd., for up to ₹750 crore.
In FY24, this business generated ₹1783.8 crore in revenue (18.3% of Alkem’s total revenue) with a net value of ₹519 crore. The deal, which is slated to close on March 31, 2025, is classified as a related party transaction, but due to account consolidation, shareholder approval is not required.
Key Details:
- Business Overview: The trade generics business, contributing ₹1,783.8 crore in FY 2023-24 (18.3% of standalone revenue), will be transferred with assets, liabilities, employees, and intellectual property.
- Transaction Timeline: Expected completion by March 31, 2025, subject to regulatory and customary approvals.
- Valuation: Estimated at ₹750 crore, based on fair market value and adjustments for working capital.
- Rationale: To streamline operations, penetrate underserved markets, and drive growth in the high-potential trade generics segment.
In the meantime, Alkem Laboratories’ shares opened at ₹5,495.10 today, reaching an intraday high of ₹5,508.75 and a low of ₹5,441.05. The stock remains in focus, trading below its 52-week high of ₹6,439.90 but comfortably above its 52-week low of ₹4,407.05.
TOPICS:
Alkem Laboratories