Advanced Enzyme Technologies Limited to acquire controlling stake in SciTech Specialties Private Limited

The Board of Directors of Advanced Enzyme Technologies Limited in its meeting held on December 26, 2020 has approved the (a) investment of an amount not exceeding Rs. 316.26 Million by way of subscription to the issue of 492,630 equity shares of SciTech Specialties Private Limited (CIN: U85190MH2007PTC175484) ["SSPL"], as may be offered on preferential issue / private placement basis by SSPL and purchase of 27,778 from selling shareholders of SSPL, aggregating to 520,408 equity shares i.e. 51% of equity share capital of SSPL, and (b) authorization for signing of Share Subscription and Shareholders' Agreement in this regard.

On completion of the aforesaid investment, SSPL will become subsidiary of Advanced Enzyme Technologies Limited ("Company" / "AETL").

SciTech Specialties Private Limited ("SSPL") [Company Identification Number (CIN): U85190MH2007PTC175484] is a contract manufacturing company with niche technology specializing in effervescent granules and tablets. Formed in 2007, SSPL is focused in animal health, pharma and nutraceutical. SSPL manufactures effervescent products with aqueous granulation technology. SSPL has two manufacturing facilities for nutraceuticals and pharmaceuticals. Regulatory approvals include approvals from from FSSAI, WHO cGMP and other accreditation from International agencies like Codex, FSMP, GSFS.

Objects and Effects of Acquisition

- Controlling stake (51%) in SSPL specializing in effervescent granules and tablets.

- Synergizes and fits with AETL's move to expand its B2C business.

- Has important applications in three of AETL's existing verticals (human health, animal nutrition, and food), providing new delivery systems for existing products and opening avenues for additional sales to AETL's existing customer base.

- Strong management expertise with a depth of experience in pharmaceutical manufacturing and the global regulatory landscape.

- Proceeds to be used for expansion of capacity, manufacturing improvements, QC & R&D Labs, Repayment of Debts etc.

- Operational synergies including location near AETL's manufacturing facilities.

Shares of Advanced Enzyme Technologies Ltd was last trading in BSE at Rs.326 as compared to the previous close of Rs. 324.1. The total number of shares traded during the day was 22693 in over 1485 trades.

The stock hit an intraday high of Rs. 331.1 and intraday low of 324.15. The net turnover during the day was Rs. 7420524.

Source : Equity Bulls

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