Nectar Lifesciences Limited has informed regarding Disclosure of material issue w.r.t.: 1. Transfer of the active pharmaceutical ingredients and formulations Business on a 'slump sale' basis; 2. Sale, transfer and delivery of Menthol Assets.3. Date of EGM
NECLIFE · price
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Nectar Lifesciences' board has approved selling its entire active pharmaceutical ingredients (API) and formulations business to Ceph Lifesciences Private Limited on a slump sale (going concern) basis for Rs 1,270 crore. Separately, the company is selling its menthol business assets to the same buyer for Rs 20 crore plus GST. The API and formulations business is the company's main operation, contributing 98.33% of total revenue and 65.39% of net worth in FY25. Both deals are expected to close by September 20, 2025. The buyer is a newly incorporated entity and not related to the promoters. An EGM is scheduled for August 4, 2025, for shareholders to approve the main transaction and appoint a new Director (R&D).
This is a near-complete exit from the company's core pharma business for a large cash inflow, which the company says will be used for debt repayment, new investments, and possibly rewarding shareholders. Shareholders should closely review the valuation, the identity of the buyer, and what the company plans to do with the proceeds, since the listed entity will be left with very limited operating revenue.