The shareholders of Granules India Ltd have approved the proposed acquisition of Auctus Pharma, a manufacturer of active pharmaceutical ingredients (APIs).
Last month, the Hyderabad-based company had entered into an agreement to acquire Auctus for Rs 120 crore.
The proposal was approved at the extraordinary general meeting held on Friday, Granules informed the Bombay Stock Exchange.
The board was also authorised to mortgage/charge assets of the company for an amount not exceeding Rs 750 crore, it said.
Hyderabad-based Auctus has two manufacturing facilities — an API facility at Pharma City in Visakhapatnam and an intermediate facility in Hyderabad.
Key approvals The API facility has approvals from leading regulatory agencies including the US FDA.
Its product portfolio includes 12 APIs as well as key intermediates of those APIs.
The acquisition process will be completed in 3-6 months.
The Granules scrip lost 0.63 per cent on the BSE on Friday to end at Rs 181.20.