Natural capsules Limited(Natural Capsules) has announced that it has entered into an arrangement to acquire API business of Naari Pharma Private Limited, an integrated Hormonal Generics & API manufacturer on a slump sale basis for a consideration of INR 245 mn. The acquisition includes the hormonal API manufacturing site located at Kashipur, Uttarakhand and associated business focused on Hormonal API segment. Naari is one of the few hormonal / steroid API manufacturers in India, serving both domestic & international markets, Naari is not a related party to any of the promoters.
Strategic Rationale for Diversification:
Foray into API & intermediate manufacturing business to diversify its current business solely focused on Empty Hard Gelatin Capsule manufacturing business. The acquisition provides a platform to enter into Hormonal API manufacturing business. Eventually, the company intends to also get into hormonal intermediate manufacturing, which require complex fermentation based manufacturing. The acquisition also provides an opportunity for Natural Capsules' to leverage its existing relationships with buyers across globe to cross sell APIs. Company intends to fund the acquisition through a mix of internal accruals & debt funding.
Shares of NATURAL CAPSULES LTD. was last trading in BSE at Rs.51.05 as compared to the previous close of Rs. 52.05. The total number of shares traded during the day was 502 in over 3 trades.
The stock hit an intraday high of Rs. 54.65 and intraday low of 51.05. The net turnover during the day was Rs. 27430.