Acquisition of 51% of Equity shares of M/s SSM Formulations Private Limited and making it as subsidiary of Eiko Lifesciences Limited once the Acquisition is completed. The Company is operating ....
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Eiko Lifesciences' board approved acquiring a 51% stake (71,71,950 shares) in SSM Formulations Pvt Ltd, a pharmaceutical manufacturing company, for a cash consideration of Rs. 18 Crores. SSM Formulations, which posted turnover of Rs. 27.65 Cr (FY25), Rs. 41.41 Cr (FY24), and Rs. 50.82 Cr (FY23), will become a subsidiary. The deal is not a related-party transaction and needs no separate regulatory approvals. The company also approved raising up to Rs. 18.15 Cr via 33 lakh warrants and Rs. 3.71 Cr via 6.75 lakh equity shares, both on a preferential basis at Rs. 55 per share, aggregating to ~Rs. 21.86 Crores. Allottees include promoter Bhavesh Tanna, promoter-group entity Lenus Finvest, and several non-promoter investors. An EGM is scheduled for 7th January 2026 to seek shareholder approval.
The acquisition extends Eiko into pharmaceutical formulations, complementing its existing specialty chemicals and API business and offering cross-selling synergies, but it will also mean equity dilution of roughly 10-12% (warrants plus shares on conversion) at Rs. 55 per share, which could pressure the stock price in the short term depending on how the market views the deal.