The board of Ipca Labs has approved the acquisition of 26.574% of the paid-up share capital of Lyka Labs Limited and entering into a joint management control agreement with the promoters of Lyka Labs. Ipca said it has acquired 26.574% shareholding of Lyka from secondary market for Rs. 97.89 crore. Shares of Ipca Labs were trading 1% lower at ₹2037.80 while Lyka were locked in 5% upper circuit as compared to a 0.5% gain in Nifty pharma index.
Consequent to this acquisition of shares, Ipca Labs has also made a public announcement to acquire 26% additional equity shares of the Lyka from its public shareholders under the SEBI Regulations.
Pharmaceutical company Lyka Labs Ltd. was incorporated in the year 1976 under the Companies Act, 1956 and is engaged in the business of manufacturing and marketing of injectables, lyophilized injectables and topical formulations. Lyka’s manufacturing facility is situated at Ankleshwar, Gujarat. The major business of the company is from India and from rest of the world (ROW) markets. Products of the company are registered in several countries.
For the six months ended September 30, 2021, Lyka had reported revenues of ₹109.87 crore.
Ipca Labs said it currently does not have any business directly from lyophilized injectables. Acquisition of shareholding in Lyka Labs will enable the company to enter into lucrative lyophilized injectables business in India and rest of world markets, Ipca said.
Lyka Labs will also immensely benefit from marketing expertise of the Company in the branded generic formulations business of the rest of world markets of Africa, Latin America, South East Asia and Middle East where Lyka Labs Ltd. is currently not doing business, Ipca said.
