Action seen in this pharmaceuticals stock; acquisition worth Rs 106 crore!
The stock has witnessed significant buying activity as it has given returns of more than 55 per cent in just one year.
On Monday, the shares of Zydus Lifesciences Limited surged 0.79 per cent, to trade at an intraday high and low of Rs 563.50 per share and Rs 557.30 per share, respectively on BSE. The Sensex and Nifty both open 0.18 percent and 0.26 per cent higher, respectively.
Zydus Lifesciences stated on June 23 that it will purchase a 6.5 per cent equity holding in Mylab Discovery Solutions Limited for Rs.106 crore. Zydus Animal Health and Investments, a wholly owned subsidiary of Zydus Lifesciences, has entered into a share purchase agreement with Rising Sun Holdings and Mylab Discovery Solutions.
Mylab rose to prominence during the Covid pandemic by developing and launching indigenous RT-PCR test kits and a platform for diagnosing Covid.
‘’Zydus Animal Health and Investments, a wholly-owned subsidiary company of Zydus Lifesciences has entered into a share purchase agreement with Rising Sun Holdings Private Limited and Mylab Discovery Solutions Private Limited to acquire 65,06,500 equity shares having face value of Re 1 each at an agreed consideration of Rs 106 crore representing 6.5 per cent of the total paid-up equity share capital of Mylab from the seller,'' said Zydus Lifesciences in a regulatory filing to the stock exchanges on June 23.
The acquisition is expected to be completed within two months after signing the share purchase agreement for the acquisition of 65,06,500 equity shares of Mylab from the existing shareholder.
Mylab's business is to research, develop, manufacture, market and distribute in-vitro diagnostics kits, equipment, reagents and related treatment goods linked to its diagnostic portfolio, as well as to provide portfolio solutions to other labs and hospitals. According to preliminary financial disclosures, Mylab generated a revenue of Rs 95 crore for the fiscal year ended March 31, 2023.
DSIJ offers a service 'Mid Bridge' with recommendations for Mid-Cap stocks based on research and analysis to help subscribers make informed investment decisions. If this interests you, then do download the service details pdf here
The proposed investment in Mylab will enable the company to engage in the burgeoning diagnostics industry, which is projected to see increased penetration via in-clinic solutions with point-of-care testing devices. The stock has witnessed significant buying activity as it has given returns of more than 55 per cent in just one year. Investors must keep a close eye on this pharmaceuticals stock.