PI Industries jumps 5 per cent as board approves acquisition of API business of Ind-Swift Labs

The overall purchase consideration will be Rs 1,530 crore. The purchase consideration will be paid in all cash and funded from the proceeds of the completed qualified institutional placement (QIP) and internal accruals.

PI Industries on July 31, 2021, executed a business transfer agreement (BTA) with Ind-Swift Laboratories Limited (ISLL) for the acquisition of their API and intermediates business undertaking on a slump sale going concern basis. 

The overall purchase consideration will be Rs 1,530 crore. The purchase consideration will be paid in all cash and funded from the proceeds of the completed qualified institutional placement (QIP) and internal accruals. The transaction is expected to be earnings accretive with immediate effect. The target entity will be acquired through PI’s fully-owned subsidiary. 

The transaction includes the entire API undertaking of Ind-Swift Laboratories, which includes two manufacturing plants located in Punjab and Jammu & Kashmir. R&D centre is set up in Mohali (Punjab) with a robust product pipeline, customer and vendor contracts, marketing, distribution as well as sales networks spanning more than 70 countries, serving more than 200+ global customers. 

The acquired undertaking has cGMP-compliant manufacturing facilities with approvals for US (USFDA), European, Japanese, Europe (EDQM), Japan (PMDA), Brazil (ANVISA), Korea (KFDA), and other markets. 

The integration of the target entity into the corporate structure of PI is expected to be completed during Q3FY22, subject to fulfilment of customary closing conditions and regulatory approvals. 

PI Industries Ltd is a leading player in the agro-chemicals space having a strong presence in both domestic and export markets. It has state-of-art facilities in Gujarat, having integrated process development teams with in-house engineering capabilities. 

The shares of PI Industries touched a high of Rs 3,089 per share on BSE during the early market hours on August 2, 2021 (Monday).