Family offices and institutional investors, both domestic and foreign, have committed a substantial ₹801 crore to funding Strides Pharma Science Ltd.’s contract development and manufacturing subsidiary, OneSource Specialty Pharma Ltd. Pre-listing round confirmation of this fundraising indicates that HBM Healthcare Investments is the primary lead investor, with involvement from other major investors such as WhiteOak Capital, Param Capital, Motilal Oswal, Enam Holdings, and SBI Life Insurance Co.
With the share subscription agreements being finalized at a pre-money equity valuation of $1.65 billion, Strides’ stockholders in OneSource will receive an embedded value of ₹663 per share. From the previous embedded value of ₹364 per share, as stated in a Scheme of Arrangement launched last September, this represents an amazing 82% gain. Getting the required regulatory permissions is one of the basic closing conditions that must be met before the investment can be made.
In order to establish a distinctive specialty pharmaceutical contract development and manufacturing organization (CDMO) with a wide range of capabilities in biologics, oral soft gels, complex injectables, sterile injectables, and complex drug delivery systems, Strides Pharma had previously made the decision to spin off its oral soft gelatin contract manufacturing business into a new entity, Stelis Biopharma.
By March of the following year, the business intends to list OneSource on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). It is currently in the process of getting final approval for the arrangement from the National Company Law Tribunal.
It is anticipated that this financing endeavor will expedite Strides’ expansion objectives, alleviate its debt load, and facilitate substantial capital expenditure obligations, thereby bolstering a robust order book spanning many platforms. The CEO of OneSource, Neeraj Sharma, and the founder of Strides Group, Arun Kumar, emphasized that this deal might release ₹6,100 crore in value for Strides’ shareholders. The significant premium from this deal, according to Strides’ MD and group CEO Badree Komandur, “underlines the company’s commitment to ongoing value creation for its stakeholders.”
Strides Pharma’s shares had a strong reaction after the announcement, closing 1.8% higher at ₹1,593.95. The stock has increased by 145% in the last year and is up 211% so far this year. Two analysts have recommended a “buy” recommendation based on Bloomberg data, indicating that they are still bullish. Furthermore, the business intends to provide OneSource business updates in its next second quarter results report, which is slated for later in October.
SOURCE :
NDTV
