Laurus Labs Commits ₹833 Million to KRKA Pharma Joint Venture

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.

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