Nectar Lifesciences Limited has informed the Exchange regarding a press release dated July 08, 2025, titled "Nectar Lifesciences Announces Strategic Sale of API and Formulations Business to Ceph Lifesciences for ₹1,270 Crores".
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Nectar Lifesciences has signed a Business Transfer Agreement to sell its core API and Formulations business to Ceph Lifesciences Private Limited on a slump sale basis for ₹1,270 crore. It has also entered an Asset Purchase Agreement to sell its menthol business assets for an additional ₹20 crore, taking the total deal value to ₹1,290 crore. The buyer is a third-party, non-promoter entity, and there will be no change in the company's existing shareholding pattern. The transaction was approved by the Board on July 7, 2025, and is subject to shareholder approval at an EGM scheduled for August 4, 2025, with completion expected on or before September 20, 2025. The company plans to use the proceeds to repay debt, invest in new business areas, reward shareholders, and fund future growth initiatives.
This is a major restructuring move that could significantly strengthen the balance sheet by retiring debt and providing cash for new ventures. Shareholders may benefit from potential reward announcements post-completion, but the future revenue base of the company will shrink considerably since the core pharma business is being divested.