Divi’s Laboratories Share Price Gains on Apr 21; Signs Long-Term Supply Agreement

Divi’s Laboratories Ltd recently informed the stock exchanges that it has signed a long-term manufacturing and supply agreement with a global pharmaceutical company. The contract is international in scope and pertains to the supply of advanced intermediates.

Confidentiality Clause

The name of the customer and quantitative terms of the deal have not been disclosed due to a confidentiality agreement between the parties. Divi’s stated that the agreement is expected to contribute to its revenue over time, but specific figures were not shared.

The company confirmed that manufacturing under this agreement is scheduled to commence from January 2027.

Investment Plan

To support the execution of this contract and other capacity requirements, Divi’s Laboratories plans to invest between ₹650 crore and ₹700 crore in capacity addition at its manufacturing facilities. The investment will be funded through internal accruals.

There is no upfront payment involved as part of this agreement.

Nature and Scope

As per the company’s regulatory filing, the deal involves the manufacturing and supply of advanced intermediates. No related party transactions are involved in this agreement. The update was disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Share Performance

As of 9:30 AM on April 21, 2025, Divi’s Laboratories share price was trading at ₹5,857.50, a 3.86% up, 5.11% lower over the past six months, but up 50.42% over the past year. The 52-week high stands at ₹6,285, while the 52-week low is ₹3,641.

Conclusion

The agreement is part of Divi’s operations in the custom synthesis space. There is no upfront payment involved in this agreement. Further details remain undisclosed as per confidentiality terms.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.