IPCA Lab gains 2 per cent on acquisition of Ramdev Chemicals

IPCA Lab gained nearly 2 per cent in the early trade on the announcement of 100 per cent acquisition in Ramdev Chemicals Private Limited. The consideration will be paid fully in cash worth Rs. 108.50 crore.

The said acquisition would help IPCA Lab to further strengthen its API business by adding new molecules in its products basket. In the recent quarter Q3FY19, the API revenue stood at Rs. 230.03 crore contributing nearly 25 per cent to the total revenue. API revenue grew by 20 per cent on YoY basis in Q3FY19.

Ramdev Chemicals is engaged in the business of manufacturing and marketing of advanced drug intermediates, fine chemicals, custom synthesis molecules and active pharmaceutical ingredients (APIs).

Ipca Laboratories is engaged in the manufacturing of active pharmaceutical ingredients and formulations. It operates in 110 countries and its export accounts for 50 per cent of the company’s income. Worldwide, the company is one of the largest suppliers of APIs and intermediates. The company holds a leadership position in anti-malarial and rheumatoid arthritis area.

On Thursday, the stock opened at Rs. 968 per share and jumped by 2 per cent and made an intraday high of Rs. 987 on the BSE.