Nectar Lifesciences Share Price Drops 13% After Selling Core Business for ₹1,290 Crore

Market Performance

• Nectar Lifesciences' share price plunged over 13% in early trade on July 8, following a significant strategic announcement.
• The stock reacted sharply after the company declared the sale of its core business segment.

Main News

• Nectar Lifesciences has agreed to sell its active pharmaceutical ingredients (API) and formulation division, along with its menthol business assets, for a combined value of ₹1,290 Crore.
• The entire transaction will be executed on a slump sale basis, as confirmed in an official exchange filing.

Company Details

• The buyer, Ceph Lifesciences, will take over:
  • The API and formulation business
  • The menthol segment, valued separately at ₹20 Crore
• This move is part of a larger restructuring strategy aimed at redefining the company's future operations.

Strategic Shift

• Nectar Lifesciences described the divestment as a "significant milestone" in its transformation journey.
• The company aims to become a more focused and agile organization, aligning with innovation-driven objectives.

Financial Utilisation of Sale Proceeds

• The company plans to utilise the proceeds from the sale to
  • Repayment of existing debt
  • Investment in new and emerging areas
  • Shareholder value enhancement
  • Funding future corporate and growth initiatives

Summary of the Article

• The Nectar Lifesciences share price saw a sharp 13% decline after the company announced its decision to sell its core business divisions to Ceph Lifesciences.
• The total deal value stands at ₹1,290 Crore, with ₹20 Crore attributed to the menthol business assets.
• This is a part of the company's broader aim to restructure operations, reduce debt, and pursue innovation.