Laurus Labs has announced an investment of up to €5 million (about Rs 45 crore) in its joint venture KRKA Pharma. The investment is expected to be completed by December 31, 2025.
KRKA d.d., Novo mesto, Slovenia (co-venturer) shall also invest an amount of Rs 45.75 crore in KRKA. The shareholding ratio between Laurus Labs and KRKA Slovenia will remain unchanged at 49:51 post the investment.
Laurus expands footprint with new production unit
The funds will be used to meet civil construction costs for a new manufacturing facility that will produce finished pharmaceutical products. The facility will cater to both Indian and new international markets, the company said in a stock exchange filing on Friday, July 25.
No change in shareholding
Despite the additional capital infusion, the shareholding structure in KRKA Pharma will remain the same. Laurus Labs will continue to hold 49 per cent, while KRKA d.d. will hold the remaining 51 per cent.
The investment will be made through subscription to equity shares at a face value of Rs 10 per share. The transaction qualifies as a related-party transaction as KRKA is a joint venture with common directors, but Laurus clarified that it is being carried out on an arm’s-length basis.
KRKA yet to begin operations
KRKA Pharma Private Limited, incorporated on April 12, 2024, is yet to begin commercial operations and has recorded nil turnover so far. The company operates in the pharmaceutical industry and has an authorised share capital of Rs 270 crore and paid-up capital of Rs 215 crore.
Laurus Labs’ Q1 profit surges over 1,154 per cent
Laurus Labs reported its Q1 earnings today, with profit rising sharply to Rs 163 crore, up 1,154 per cent from Rs 13 crore in the same quarter last year. Revenues also rose 31 per cent to Rs 1,570 crore from Rs 1,195 crore a year ago.