Ind-Swift Laboratories Ltd (Ind-Swift) is selling its active pharmaceutical
ingredients (API) and contract research and manufacturing services (CRAMS) business to Synthimed Labs Pvt Ltd (Synthimed), a portfolio company of the India Resurgence Fund (IndiaRF) for an enterprise value of Rs 1,650 crore.
IndiaRF is an India-focused investment platform promoted by Piramal Enterprises and Bain Capital. While the equity value of the transaction is Rs 850 crore, it also considers debt of around Rs 800 crore, Ind-Swift said in a regulatory filing.
The pharmaceuticals firm added that it will also be entitled to a minority stake in Synthimed so that it receives the benefit of the future growth in the API business. The transaction is expected to be completed by March 6, 2024.
The API business posted a turnover of Rs 1,151.95 crore in the year ended March 31, 2023, which constituted close to 96 per cent of the company’s consolidated turnover.
The slump sale is being done to reduce debt and the proceeds can also be used to invest in new ventures or expanding operations. “The infusion of capital from the slump sale will empower the company to optimise its capital structure, reduce debt, and fortify its financial foundation,” Ind-Swift added.
