Ipca Labs approves acquisition of 26.5% stake in Lyka Labs

Ipca Labs approves acquisition of 26.5% stake in Lyka Labs

The board of Ipca Labs has approved the acquisition of 26.574% of the paid-up share capital of Lyka Labs and entering into a joint management control agreement with the promoters of Lyka Labs. Ipca acquired 26.574% shareholding of Lyka from secondary market for Rs 97.89 crore.
Shares of Ipca Labs were trading 1% lower at Rs 2037.80 while Lyka were locked in 5% upper circuit.
Consequent to this acquisition of shares, Ipca Labs has also made a public announcement to acquire 26% additional equity shares of the Lyka from its public shareholders under the SEBI Regulations.

Pharmaceutical company Lyka Labs was incorporated in the year 1976 under Companies Act, 1956 and is engaged in the business of manufacturing and marketing of injectables, lyophilized injectables and topical formulations. Lyka’s manufacturing facility is situated at Ankleshwar, Gujarat. The major business of the company is from India and from rest of the world (ROW) markets. Products of the company are registered in several countries.
For the six months ended September 30, 2021, Lyka had reported revenues of Rs 109.87 crore.
Ipca Labs, currently does not have any business directly from lyophilized injectables. Acquisition of shareholding in Lyka Labs will enable the company to enter into lucrative lyophilized injectables business in India and rest of world markets.

Lyka Labs will also benefit from marketing expertise of the Company in the branded generic formulations business of the rest of world markets of Africa, Latin America, South East Asia and Middle East where Lyka Labs Ltd. is currently not doing business.

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