Shares of Nectar Lifesciences Ltd. plunged nearly 20 percent in intra-day trading on Tuesday, July 8, hitting a fresh 52-week low of ₹18.60. The sharp decline came after the company announced the strategic sale of its core Active Pharmaceutical Ingredients (API) and formulations business to Ceph Lifesciences for ₹1,270 crore, in a slump sale transaction.
In a regulatory filing, the company confirmed that it had signed a definitive Business Transfer Agreement (BTA) with Ceph Lifesciences Private Limited for the transfer of its core operations involving manufacturing, distribution, and marketing of APIs and formulations. The total consideration for the transaction stands at ₹1,270 crore. Additionally, Nectar Lifesciences also signed an Asset Purchase Agreement (APA) for the sale of its menthol business assets to the same buyer for ₹20 crore.
The transaction is part of a broader long-term strategy aimed at streamlining operations and repositioning the company for future growth. Nectar Lifesciences said the proceeds from the business divestiture will be used to repay existing debt, invest in new and emerging areas, reward shareholders (subject to regulatory approvals), and fund future corporate growth initiatives. By exiting mature and capital-intensive business segments, the company seeks to unlock shareholder value and reposition itself for innovation-driven expansion.
Commenting on the development, Mr. Sanjiv Goyal, Promoter and Chairman of Nectar Lifesciences, stated:
“This transaction marks a significant milestone in Nectar Lifesciences’ evolution. By divesting mature segments of our business, we are laying the foundation for a focused and agile organization geared towards innovation and long-term value creation. We thank our stakeholders for their continued trust and support as we embark on this next chapter.”
Transaction Overview
According to the company’s official disclosure:
Buyer: Ceph Lifesciences Private Limited (a third-party, non-promoter entity)
Consideration: ₹1,270 crore for the core API and formulations business; ₹20 crore for menthol business assets
Completion Timeline: On or before September 20, 2025, subject to customary regulatory and shareholder approvals
Shareholding Pattern: The deal will not result in any change to the company’s existing shareholding structure.
The Board of Directors of Nectar Lifesciences approved the deal on July 7, 2025, and an Extraordinary General Meeting (EGM) has been scheduled for August 4, 2025, to seek shareholder approval.
Market Reaction and Stock Trend
Following the announcement, investor sentiment turned sharply negative. The stock plummeted 19.6 percent to a 52-week low of ₹18.60. It is now trading nearly 67 percent below its 52-week high of ₹56.39, which it had touched in September 2024.
Over the past one year, the stock has shed more than 26 percent of its value. In the current month alone, the stock is down over 14 percent after recording an 18 percent loss in June. Notably, the counter had gained 23 percent in May but had remained under pressure in the first four months of the calendar year, registering declines of 4 percent in April, 13 percent in March, 22 percent in February, and 13 percent in January.
Nectar Lifesciences Ltd. is a BSE and NSE-listed pharmaceutical company known for its research-driven approach and global distribution of high-quality APIs and finished formulations. The company has a long-standing focus on operational excellence and value creation. The current transaction marks a pivotal shift in Nectar’s strategic roadmap as it pivots toward higher-value and possibly less capital-intensive verticals in the healthcare space.
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