Bharat Parenterals Ltd Acquires Majority Stake in Innoxel Lifesciences Pvt Ltd

Bharat Parenterals Ltd has announced that it will purchase an additional 9,985,477 equity shares of its subsidiary, Innoxel Lifesciences Pvt Ltd, on a preferential basis. Each share has a face value of ₹10 and will be acquired at a premium of ₹54.90, making the total price per share ₹64.90.

The target entity is Innoxel Lifesciences Private Limited. Innoxel has an authorised capital of 10,00,00,000 equity shares of ₹10 each, totalling ₹1,00,00,00,000, and a paid-up capital of 9,00,14,523 equity shares of ₹10 each, amounting to ₹90,01,45,230.

For the fiscal year ending March 31, 2024, Innoxel reported a turnover of approximately ₹3,74,00,645 and a net loss of ₹7,98,40,666.

The acquisition would fall within related party transactions as Innoxel Lifesciences Pvt Ltd is a subsidiary of Bharat Parenterals Ltd. Mr Bharat R. Desai, the Managing Director of Bharat Parenterals Ltd, is also a Whole-Time Director in Innoxel Lifesciences Pvt Ltd.

Innoxel Lifesciences Private Limited operates in the pharmaceutical products manufacturing industry, which aligns with Bharat Parenterals Ltd’s main line of business. The acquisition aims to support the expansion of the existing plant and meet the subsidiary company’s working capital requirements.

Details Of The Acquisition

The indicative time period for completing the acquisition is June 30, 2024, subject to approval from shareholders. The nature of consideration is cash consideration.

The acquisition cost is ₹64.90 per share, including a premium of ₹54.90 per share, as per the Shareholding Agreement between the Company and other Innoxel Lifesciences Pvt Ltd shareholders.

Following the acquisition, the Company will hold 55.89% of the equity shares in Innoxel Lifesciences Pvt Ltd, up from the previous holding of 51.00%.

About Innoxel Lifesciences Private Limited

Innoxel Lifesciences Private Limited was incorporated on October 16, 2020. It specialises in the manufacturing of pharmaceutical formulations.

On June 6, 2024, the share price of Bharat Parenterals Ltd opened at ₹1,405.00, touching the day’s high at ₹1,405.00, as of 10:47 AM on the BSE.

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