Shares of IPCA Laboratories dropped 9.1 percent on Tuesday, April 25 to hit a new 52-week-low following the announcement of a definitive agreement to acquire a 33.38 percent stake in Unichem Laboratories for an aggregate consideration of ₹1,034.06 crore.
During Tuesday’s trade, the stock opened at a price of Rs. 795 per share against the previous close of Rs. 826.50 per share and fell further during the early trading session to touch a 52-week low of Rs. 751 apiece.
It was trading at ₹763.60 apiece, down by 7.61 percent at 10:05 a.m. on the NSE.
The stock touched a 52-week-high of Rs. 1,037.45 on May 04, 2022 indicating that at the current level, the stock is trading 35.8 percent below its 52-week high.
The stock has declined over 3.5 percent in the last one month. Moreover, in the past six months, it has been down by almost 19 percent. However, in the last five years, it has yielded a return of nearly 100 percent.
IPCA Laboratories has entered into an agreement with one of the promoters of Unichem Laboratories to acquire 2,35,01,440 shares at a price of ₹440 per share, aggregating to ₹1,034.06 crore, the company informed through an official filing.
Additionally, IPCA has made an open offer to the public equity shareholders of Unichem to acquire up to 26 per cent of the fully diluted outstanding equity share capital at the same price of ₹440 per share.
"Unichem has developed an excellent and proven quality track record with a differentiated capability which is highly complementary to lpca's strengths. This acquisition is in line with our stated strategy to enhance our portfolio in our chosen growth markets. We both are well positioned to successfully integrate our product offerings and grow our businesses," said Premchand Godha, Promoter and Executive Chairman of the company.
The acquisition is subject to approval from the Competition Commission of India. The rationale for this acquisition is to expand IPCA Labs' product range and complement its existing business. The deal will be funded through IPCA Labs' internal accruals.
IPCA Laboratories Limited is an India-based pharmaceutical company. The company is manufacturing and marketing over 350 formulations and approximately 80 active pharmaceutical ingredients (APIs) covering various therapeutic segments.
According to a Mintgenie poll, an average of 21 analysts have a ‘HOLD’ call on the stock.