Nectar Lifesciences Share Price Decline Over 15% After Core Business Sale for ₹1,270 Crore

Nectar Lifesciences saw a sharp stock decline of over 15% after revealing a major restructuring step involving the sale of its core business for ₹1,270 crore. The deal is part of the company's broader plan to reduce debt obligations and reallocate resources towards emerging opportunities.

Core Business Sold for ₹1,270 Crore to Ceph Lifesciences

On July 8, 2025, Nectar Lifesciences signed a definitive agreement with Ceph Lifesciences Pvt Ltd to sell its core division, which includes manufacturing and marketing of APIs and formulations, for ₹1,270 crore. This transaction is structured as a slump sale and is expected to be completed by or before September 20, 2025, subject to customary approvals.

Menthol Business Also Sold for ₹20 Crore

In addition to the core unit, Nectar also signed an asset purchase agreement with Ceph Lifesciences for the sale of its menthol business at ₹20 crore. Together, these sales are set to bring strategic realignment and improved capital efficiency.

Purpose of the Strategic Sale

The company intends to use the funds to repay existing debt, fuel new ventures, reward shareholders based on requisite approvals, and finance growth initiatives. This move signifies a shift in company focus towards innovation and agility in emerging sectors.

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No Change in Shareholding Pattern

Despite the sale, Nectar Lifesciences confirmed that there will be no change in the existing shareholding pattern. The decision will be formally presented for approval at the Extraordinary General Meeting scheduled on August 4, 2025.

Nectar Lifesciences Share Price Performance

On July 8, 2025, Nectar Lifesciences share price opened at ₹22.05 on NSE, below the previous close of ₹23.13. During the day, it surged to ₹22.05 and dipped to ₹18.70. The stock is trading at ₹19.29 as of 9:56 AM. The stock registered a significant decline of 16.60%.

Over the past week, it has declined by 15.36%, over the past month, it has declined by 16.60%, and over the past 3 months, it has declined by 17.10%.

Conclusion

Nectar Lifesciences’ ₹1,270 crore core business sale marks a pivotal step toward financial restructuring. With plans to reduce liabilities and invest in future growth areas, the company is positioning itself for a streamlined and innovation-driven trajectory.

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