Companies

Ipca to pick up 26.57 per cent stake in Lyka for ₹97.89 crore

Our Bureau | | Updated on: Nov 24, 2021
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Makes its entry into the lyophilized injectables business.

Even as the year runs out, Ipca Laboratories said that its Board of directors had approved the acquisition of 26.57 per cent of the paid-up share capital of Lyka Labs Limited 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. It would pick up an additional 26 per cent equity shares of Lyka from its public shareholders, following the rules, Ipca told the Bombay Stock Exchange.

Lyka makes and markets injectables, lyophilized injectables and topical formulations. And a significant part of its business is from India and the 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. And the acquisition of this shareholding would enable it to enter into lucrative lyophilized injectables business in India and ROW markets.

Further, it added that Lyka would also benefit from its marketing expertise in the branded generic formulations business of the ROW markets of Africa, Latin America, South East Asia and the Middle East, where Lyka does not do business.

Ipca shares closed on BSE, slightly up, at ₹2,060.35 on Wednesday.

Published on November 24, 2021

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