Advanced Enzymes Tech buys 51 per cent stake in SciTech Specialities

Advanced Enzymes Technologies Limited’s (AETL) board of directors have approved the issuance of 4,92,630 equity shares of SciTech Specialities Private Limited (SSPL) to be offered on a preferential issue/private placement basis by SSPL. It also includes the purchase of 27,778 equity shares from selling shareholders of SSPL, aggregating to 5,20,408 equity shares i.e. 51 per cent of the equity share capital of SSPL. 

SSPL is a contract manufacturing company with niche technology, specialising in effervescent granules and tablets. It was formed in 2007 and is focussed on animal health, pharma, and nutraceutical. It has two manufacturing facilities for nutraceuticals and pharmaceuticals. Regulatory approvals include approvals from FSSAI, WHO cGMP, and other accreditation from international agencies such as Codex, FSMP & GSFS. 

As SSPL is present across the existing verticals of AETL i.e. human health, animal nutrition, and food, this acquisition would provide new delivery systems for existing products along with opening avenues for additional sales to AETL’s existing customer base. Also, the proceeds would be used for the expansion of capacity, manufacturing improvements, QC & R&D Labs, repayment of debts, etc. 

The total cost of acquisition is Rs 31.62 crore and the consideration would be paid in cash. The acquisition is estimated to be completed by January 31, 2021. 

SSPL has also been exporting to France, Peru, Ecuador, Honduras, Vietnam, Thailand, Cambodia, Laos, Iraq, Oman, Turkey, Egypt, etc. During H1FY21, it has generated revenue of Rs 19 crore and EBITDA of Rs 4 crore with an EBITDA margin of 21 per cent. It earned a net profit of Rs 1.62 crore. 

During the early morning session on Monday, the stock of AETL surged 4.3 per cent to Rs 339.10 from its previous close of Rs 325.10.