Shares of Divi’s Laboratories surged nearly 4% to Rs 5,864.00 in early trade on April 21, following a key announcement about a strategic global drug supply agreement and fresh capital investment plans. The stock opened strong at Rs 5,802 and climbed as high as Rs 5,914, compared to its previous close of Rs 5,640. At this level, the company commands a market capitalization of Rs 1.55 lakh crore.
The sharp uptick comes after Divi’s Labs revealed in an exchange filing that it has entered into a long-term manufacturing and supply agreement with a global pharmaceutical partner. While the partner’s identity remains undisclosed due to confidentiality clauses, the company emphasized that the deal is significant in scale and expected to materially contribute to revenues.
The agreement revolves around the manufacturing and supply of advanced intermediates, a core focus for Divi’s in its growing custom synthesis vertical.
To support this expansion and strengthen future operations, Divi’s Laboratories announced a capital expenditure plan of ₹650-700 crore. The investment will be allocated toward enhancing capacity at its current manufacturing sites and will be funded via internal accruals.
Divi’s management expressed confidence that the agreement would not only ensure secure supply to its global partner but also deepen its foothold in the custom synthesis space, a key growth driver for the company.
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