Strides Pharma announces business rejig. Shares end 7% up, hit 52 week high
Strides Pharma Science's Singapore-based wholly-owned step-down subsidiary Strides Softgels Pte on Monday announced that it will acquire its CDMO business and Soft Gelatin business from its other wholly-owned subsidiary Strides Pharma Global Pte (SPG).
The announcement was made by the company ahead of the market closing. The stock settled at Rs 536 on the NSE, up Rs 37, or 7% over Friday's closing price.
Strides Pharma Science shares also hit their 52-week high of Rs 539.
Strides Pharma Global is also based out of Singapore and houses the CDMO business and Soft Gelatin business. Meanwhile, Strides Softgels is a newly incorporated company by Strides Pharma Services (SPSPL), which is an Indian wholly-owned arm of Strides Pharma Science, the company filing revealed.
«Both SPSPL and Strides Softgels will form part of the business undertaking proposed to be demerged by Strides to Stelis.
In this regard, SPG and Strides Softgels has entered into a Binding Memorandum of Understanding (MOU) to record the key terms of the Proposed Transaction and have agreed that definitive agreements shall be executed within three months from the date of signing of the Binding Memorandum of Understanding,» the filing read.
The CDMO business and Soft Gelatin business of SPG will be transferred to Strides Softgels for cash consideration equal to the book value of the business undertaking as of the date of completion of the transaction. The book value of the Business Undertaking of SPG as of August 31, 2023 is $3.12 million.
The price action was accompanied by strong volume action with more than 40.74 lakh shares trading around the closing time.
