Nectar Lifesciences announces strategic sale of API and Formulations Business to Ceph Lifesciences for ₹1,270 Crores

Nectar Lifesciences Limited (NSE: NECLIFE, BSE: 532649), a leading pharmaceutical company, today announced the signing of a definitive Business Transfer Agreement (BTA) for the sale of its core business division-comprising the manufacture, distribution, and marketing of active pharmaceutical ingredients (APIs) and formulations-to Ceph Lifesciences Private Limited, for a consideration of ₹1,270 crore (INR 12,70,00,00,000), on a slump sale basis.

Additionally, the Company has entered into an Asset Purchase Agreement (APA) for the sale of its menthol business assets to Ceph Lifesciences for ₹20 crore, marking a comprehensive restructuring move aligned with its future strategy.

Strategic Purpose and Value Creation

This transaction forms a part of Nectar Lifesciences' long-term strategy to streamline its operations, strengthen its financial position, and unlock value for shareholders. The proceeds from the sale will be used to:

- Repay existing debt
- Invest in new and emerging business areas
- Reward shareholders, subject to applicable approvals
- Fund future corporate and growth initiatives

Mr. Sanjiv Goyal, Promoter and Chairman of Nectar Lifesciences, commented: "This transaction marks a significant milestone in Nectar Lifesciences' evolution. By divesting mature segments of our business, we are laying the foundation for a focused and agile organization geared towards innovation and long-term value creation. We thank our stakeholders for their continued trust and support as we embark on this next chapter."

Transaction Overview

Buyer: Ceph Lifesciences Private Limited (a third-party, non-promoter entity)

Consideration: ₹1,270 crore for the core API and formulations business; ₹20 crore for menthol business assets

Completion: Expected on or before September 20, 2025, subject to customary approvals

Shareholding Pattern: No change in the Company's existing shareholding

The transaction was approved by the Company's Board on July 7, 2025, and is subject to shareholder approval at the Extraordinary General Meeting (EGM) to be held on August 4, 2025.

Shares of Nectar Lifesciences Limited was last trading in BSE at Rs. 23.16 as compared to the previous close of Rs. 22.76. The total number of shares traded during the day was 133684 in over 584 trades.

The stock hit an intraday high of Rs. 23.50 and intraday low of 22.60. The net turnover during the day was Rs. 3084898.00.

Source : Equity Bulls

Keywords

NectarLifesciences INE023H01027 Pharmaceuticals BTA Sale CoreBusinessDivision APIs CephLifesciences