Pharmaceutical company, Nectar Lifesciences, has sold its core API and formulation business and its Menthol Assets to Ceph Lifesciences in a deal worth Rs 1290 crore. In an exchange filing, the company said that it has sold its active pharmaceutical ingredients (API) business for Rs 1270 crore and menthol business assets for Rs 20 crore.
Why does the deal matter?
According to the exchange filings by Nectar Lifesciences, the API and formulation business generated 98.33 percent of the company’s total revenue/ income in the fiscal year 2025. Of the company’s Rs 1669 crore revenue (standalone) in FY25, about Rs 1642 crore came from the API and formulation businesses.
Furthermore, Nectar Lifesciences says that its investment in the API and formulation business amounted to Rs 588 crore and constituted 65.39 percent of the company’s total net worth.
Additionally, Nectar Lifesciences’ menthol business assets of the company, sold for Rs 20 crore, generated about Rs 6.4 crore in revenue in FY25
The company said that it is selling its said businesses for strategic purposes such as debt repayment, rewarding the shareholders and investment in new projects.
Commenting on the deal, Sanjiv Goyal, Promoter and Chairman of Nectar Lifesciences said that the transaction marks a significant milestone in Nectar Lifesciences’ evolution. “By divesting mature segments of our business, we are laying the foundation for a focused and agile organisation geared towards innovation and long-term value creation.”, Goyal added.
Nectar Lifesciences stock crashes
After the announcement of the sale of core businesses of the company, Nectar Lifesciences’ stock crashed on Tuesday. The stock lost about 20 percent of its value by 1 PM. The stock is trading at its 52-week low as of 1 PM.
In the past one month, Nectar Lifesciences’ shares were steady at a price between Rs 20 to 23 per share. On Monday, it closed at Rs 23.13 per share. However, after the announcement of the deal, the shares plunged to Rs 18.50 per share.