On April 24, 2023, it was announced that lpca Laboratories Limited had engaged into a share purchase agreement to acquire an astounding 33.38 percent of the paid-up equity share capital of Unichem Laboratories Limited. Dr. Prakash Amrut Mody, one of the company’s promoters, was acquired for Rs. 440 per equity share, for a cumulative total of Rs.
However, under SEBI SAST regulations, this acquisition provoked an open offer because the acquirer, Ipca Laboratories, was acquiring more than the threshold limit.
As a result, Ipca Laboratories made an open offer to the public equity shareholders of Unichem Laboratories to acquire up to 26% of the equity share capital at a price of Rs 440 per share, which represents a premium of 13.4% over the last closing price on NSE of Rs 390.05 per share.
The acquisition requires CCI permission, but its benefits are huge.
Unichem Laboratories is an international, integrated, specialty pharmaceutical company that manufactures and markets a vast array of pharmaceutical formulations as branded generics and generics in a number of countries around the world, with the United States of America and Europe constituting the company’s largest markets.
In the meantime, lpca Laboratories is one of the largest manufacturers and suppliers of more than a dozen APis.
These APis are manufactured in facilities authorized by the most stringent drug regulatory authorities in the world, including UK-MHRA, EDQM-Europe, and WHO-Geneva, among others. Ipca’s business and product portfolio and Unichem’s business and product portfolio are complementary, making this acquisition an intriguing prospect for both companies.
Today, shares of lpca Laboratories opened at Rs 841.45, reaching a high of Rs 854.55 and a low of Rs 824. However, the stock ended the day at Rs 826.50, a decrease of 1.68 percent.