Drugmaker Ind-Swift Laboratories’ board has approved the sale of its active pharmaceutical ingredients (API) and contract research and manufacturing services to Synthimed Labs Private Ltd, a portfolio company of India Resurgence Fund, for ₹1,650 crore.

IndiaRF is an India-focused investment platform promoted by Piramal Enterprises and Bain Capital.

“Equity value for this transaction for the company is ₹850 crore, considering an approximate debt of ₹800 crore, subject to other adjustments in accordance with the terms of the BTA (business transfer agreement),” the company told the BSE. Ind-Swift Labs closed ₹123.40, up almost 20 per cent on Wednesday.

Ind-Swift has two manufacturing sites in Punjab and Jammu, and a combined reactor capacity of about 700 KL catering to both regulated and unregulated markets, it said. “The API business has (a) strong market and cost position with diverse therapeutic presence across the US, Japan, Korea, EU, Brazil and India,” it added.

Ind-Swift reported a consolidated revenue of ₹1,207 crore and consolidated EBITDA of ₹256 crore in FY23. Shareholder and regulatory approvals are still required for the completion of the transaction, it said, adding that Synthimed will also acquire an intermediate manufacturing facility from the promoter group.

Capacity expansion

Shantanu Nalavadi, Managing Director of IndiaRF, said in a statement that the business needed capital infusion for it to acquire scale and grow. “We are committed to invest further primary capital into the businesses to expand capacity on the back of growth from newer geographies and investment in new product development across both API and CRAMS, to provide a larger portfolio of products to its customers,” he added. PwC was the exclusive financial advisor to Ind-Swift on this transaction.