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Ipca Laboratories said its board of directors had approved the acquisition of 26.57 per cent of the paid-up share capital of Lyka Labs, for ₹97.89 crore. The deal will mark Ipca’s entry into the lucrative lyophilized injectables business.
The company has also got its board’s go-ahead to enter into a joint management control agreement with the promoters of Lyka Labs, a company incorporated in 1976. In fact, it would pick up an additional 26 percent equity shares of Lyka from its public shareholders, in accordance with the rules, Ipca told the Bombay Stock Exchange.
What Lyka does
Lyka makes and markets injectables, lyophilized injectables and topical formulations. And a major part of its business is from India and rest of the world (ROW) markets. It has a manufacturing facility in Ankleshwar, Gujarat.
Ipca currently does not have any business directly from lyophilized injectables. The acquisition of this shareholding would enable it to enter into lucrative lyophilized injectables business in India and ROW markets, it said.
Further, it added that Lyka would also benefit from its marketing expertise in the branded generic formulations businsess of the ROW markets of Africa, Latin America, South East Asia and Middle East where Lyka does not do business
Ipca shares closed slightly up at ₹2,060.35 on the BSE on Wednesday.
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