CALCULATE YOUR SIP RETURNS

Laurus Labs Commits ₹833 Million to KRKA Pharma Joint Venture

Written by: Team Angel OneUpdated on: Mar 7, 2025, 2:37 PM IST
​Laurus Labs is investing ₹833 mn in its joint venture, KRKA Pharma, alongside KRKA d.d.'s ₹867 mn investment, to set up a pharmaceutical manufacturing facility.
Laurus Labs Commits ₹833 Million to KRKA Pharma Joint Venture
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

Laurus Labs Ltd. has approved an ₹833 million investment in KRKA Pharma Private Limited, its joint venture with KRKA d.d., Novo mesto, Slovenia. KRKA d.d. will contribute ₹867 million, maintaining the 51:49 shareholding structure between the two companies.  

Following the announcement, as of March 7, 12:50 PM, Laurus Labs Ltd is trading at ₹571.20, down ₹9.35 (1.61%) for the day. Over the past month, the stock has declined by 10.94%, but it remains up by 35.36% over the past year.

Investment Details

Laurus Labs will complete its ₹833 mn investment by March 31, 2025, through a cash subscription to 83.3 million equity shares of KRKA Pharma at ₹10 per share. KRKA d.d. will invest ₹867 mn, ensuring no change in the existing shareholding ratio, with KRKA d.d. holding 51% and Laurus Labs 49%.

As per the filing, the investment will go towards land acquisition and setting up a manufacturing facility for KRKA Pharma. The joint venture was incorporated in April 2024 and has not yet started operations. The manufacturing unit will focus on finished pharmaceutical products for new markets, including India.

The company has not provided further details on the timeline for the facility’s completion.

Regulatory Compliance

Since KRKA Pharma is a joint venture of Laurus Labs, the investment falls under related party transactions. However, Laurus Labs has stated that the transaction is being conducted at arm’s length. The company also confirmed that no additional regulatory or government approvals are required for the investment.

KRKA Pharma’s Background

KRKA Pharma was incorporated on April 12, 2024, under the Companies Act, 2013. The company has an authorized share capital of ₹270 crore, divided into 27 crore equity shares of ₹10 each. Its paid-up share capital currently stands at ₹45 crore, with 4.5 crore equity shares of ₹10 each.

Conclusion

Overall, the investment will be used for setting up a manufacturing facility, with no change in the existing shareholding structure between Laurus Labs and KRKA d.d.

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.

Published on: Mar 7, 2025, 2:37 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

Know More

We're Live on WhatsApp! Join our channel for market insights & updates

Open Free Demat Account!

Join our 3 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy ₹0 Account Opening Charges

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 3 Cr+ happy customers