Indoco Remedies Limited has informed the Exchange about Approval of Agreement to Transfer Business
INDOCO · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Indoco Remedies Limited's Board has approved the sale of its Ophthalmic Division to Sunways (India) Private Limited for Rs. 110 Crores on a slump sale basis. The division contributed Rs. 47.79 Crores in revenue for FY 2024-25, representing just 3.2% of the company's standalone total revenue from continuing operations. The sale covers the ophthalmic business in India and 15 African territories as a going concern. The transaction is not a related party transaction and the buyer is not from the promoter group. Expected completion is around 3 months, subject to fulfilment of conditions precedent. The company states it intends to focus on core therapeutic areas.
The sale is positive for Indoco as it monetises a non-core division at a reasonable valuation (roughly 2.3x revenue). The Rs. 110 crore inflow with no change in shareholding should strengthen the balance sheet and allow management to focus on higher-margin core businesses. However, the 3.2% revenue contribution means the financial impact on overall earnings will be minimal.