Strides Shasun to spin off API division into a wholly owned subsidiary
The API division had a turnover of Rs 712.2 crore in 2015-16
New Delhi: Pharmaceutical firm Strides Shasun is hiving off its active pharmaceuticals ingredients (API) business into a wholly-owned arm.
The company's board at its meeting held today has given an in-principle approval to hive-off the API business into a wholly-owned subsidiary, subject to finalising modalities of the transfer, Strides Shasun said in a BSE filing.
The API division had a turnover of Rs 712.2 crore in 2015-16, it added.
For the fiscal 2015-16, the company had a consolidated net sales of Rs 3,014.33 crore with a net profit of Rs 208.92 crore.
Explaining the rationale behind the move, the company said the business requires a different level of focus.
"With the new set of regulatory and statutory compliance, the commodity API business will need its own leadership team and strategy. To achieve its strategic objectives, the business will be carved out," it said.
Post the hiving off, the company said there will not be any change in its shareholding pattern.
Stock of Strides Shasun ended at Rs 1050.10, down 5.49 percent from the previous close on BSE.
Weak global trends and persistent foreign fund outflows coupled with rising crude prices led to domestic markets snapping their three-day positive streak. However, they bounced back on the back of gains in oil & gas, metal, and auto sectors.
Markets ended higher for the third consecutive session led by a rally in IT stocks and positive global sentiment
Among the sectoral indices, IT was the only laggard. Media was the biggest gainer. Oil & gas, banking, financial services, consumer durables, auto, metal and FMCG rose between 1 and 2 percent. BSE Midcap and Smallcap indices gained over 1.5 percent.