Eiko LifeSciences Ltd. (ELL) has entered an MOU with Vivacious Pharmatex Pvt. Ltd. (VPPL). The salient features of the MOU are as under:
1. ELL to make strategic investment in VPPL by way of acquiring 5% equity stake in VPPL.
2. Besides the amount of Strategic investment the expected additional outlay on account of Capital Expenditure, research and development will be approximately Rs 3.00 Crore (Rupees Three Crores Only)
3. ELL to assist VPPL in identifying, developing, and promoting new products and marketing thereof in the interest of both the companies.
4. Both VPPL and ELL to use their manufacturing facilities/ expanded capacities to manufacture the products identified and developed by ELL.
5. ELL to be the preferred source of supply for some the key Raw Materials to VPPL at "Arm's Length" transaction.
6. As mentioned in point no. 02 hereinabove, ELL has agreed to do necessary Capital Expenditure (CAPEX) required for the development and manufacturing of new products, and assist VPPL in some of the intermediate processes.
7. ELL to transfer technologies for Newly developed products (Cosmetic Emollients) to VPPL. As a result, VPPL to do manufacturing for and on behalf of the ELL.
8. All the products developed / co-developed and manufactured would be marketed by ELL.
Commenting on this development, Laxmikant Kabra, Chairman & Director, Eiko LifeSciences said, "This is just the beginning of our fruitful relationship, and this association would help our business run smoothly. We are thankful to team VPPL and our customers for having such a great confidence in us. This was not possible without the efforts of team ELL. We shall continue to remain committed to growth of our company and look forward to many more years of mutually beneficial association."
Shares of Eiko LifeSciences Ltd was last trading in BSE at Rs. 76.30 as compared to the previous close of Rs. 75.78. The total number of shares traded during the day was 7678 in over 87 trades.
The stock hit an intraday high of Rs. 78.86 and intraday low of 73.23. The net turnover during the day was Rs. 587597.00.