Big Deal: Pharma sector announces major deal - buyers will get one free share:

News Topical, Digital Desk : Pharma company Astal Laboratories Limited has approved the 100% acquisition of Sriven Pharmachem India Pvt Ltd (SPIPL) at its board meeting. The deal will be conducted on a 1:1 share swap basis for ₹277.2 crore, meaning Sriven shareholders will receive shares of Astal Laboratories for every share they hold. The company states that this acquisition is a strategic step towards expanding its production capacity and driving future growth.

What is the size and structure of the deal? The total value of this acquisition has been set at ₹277.2 crore. It will be entirely based on a 1:1 share swap—meaning no cash payment, but shares will be exchanged for shares. This will result in existing shareholders of Sriven Pharmachem acquiring a stake in Astal Laboratories. The company has also approved an increase in its share capital and a special share issue.

What is the purpose of the deal? Astal Laboratories has described this acquisition as a key part of its expansion strategy. The deal will increase the company's manufacturing capacity, enter new pharmaceutical product segments, and improve operating margins. The company is already active in the manufacturing and trading business of pharmaceuticals and healthcare products.

What does Sriven Pharmachem do ? Sriven Pharmachem India Pvt Ltd is a manufacturer of Active Pharmaceutical Ingredients (APIs) and intermediates. It has a multi-product facility and also engages in export-oriented business. This deal is significant for Astal because it will provide the company with access to API production technology, new international clients, and value-added products.

What is the current status of Astal Laboratories? The company has a market cap of approximately ₹150 crore. The company recently acquired a new API manufacturing plant, which is expected to improve both its production capacity and margin profile. The company's Q2FY26 results will be released soon, which will provide investors with a better picture of its financial performance and the impact of this acquisition.

How will this acquisition benefit the company? Astal Laboratories is expected to gain three major benefits after the acquisition: supply chain integration: better control from raw materials to finished drugs; and operating efficiency: reduced production costs and increased margins. Entry into new markets: Strong presence in the domestic and export markets through Sriven. Astal Laboratories' acquisition of Sriven Pharmachem will give the company a strong foothold in the API and pharma manufacturing segments. With this ₹277.2 crore share swap deal, the company is poised to reorient its expansion, production capacity, and growth vision. For investors in the pharmaceutical sector, this deal is being considered a sign of Astal's long-term value upgrade.