Sun Pharma to Acquire 14.28% Stake in IFQM for ₹12.5 Crore

On May 30, 2024, Sun Pharmaceutical Industries Limited (Sun Pharma) informed the stock exchanges that the company has accepted the preferential offer to acquire 14.28% shares of the Indian Foundation for Quality Management (IFQM), a Section 8 Company.

Details of the Acquisition

Sun Pharmaceutical Industries Limited is investing in the equity shares of IFQM at the face value of the shares, based on the Valuation Report. Hence, the transaction is at arm’s length.

Regarding the objective of the acquisition, Sun Pharma stated that it is to support the objective with which IFQM is set up.

The cost of acquisition of the shares is ₹12,50,00,000 (Indian Rupees Twelve Crore Fifty Lakh only), resulting in a 14.28% shareholding on a fully diluted basis. The acquisition is expected to be completed by July 2024.

About the Acquired Entity

Indian Foundation for Quality Management (IFQM) is a Section 8 Company, i.e., not-for-profit Company. It was registered on September 6, 2023, and has its registered office in Bangalore, Karnataka.

Indian Foundation for Quality Management’s key objective is to be an integrated, empowered foundation at the forefront of driving positive change in the Indian industry. IFQM aims to empower and encourage Indian organisations in various sectors to adopt and incorporate quality values, practices and principles in all aspects of management.

Mr Dilip Shanghvi, Chairman and Managing Director of Sun Pharmaceutical Industries Limited, is a Director of the Indian Foundation for Quality Management.

About Sun Pharmaceutical Industries Limited

Sun Pharmaceutical Industries is a prominent global speciality generics company with a diverse portfolio including innovative, generics, and consumer healthcare products. As the largest pharmaceutical company in India, it is also a leading generic manufacturer in the US and global emerging markets. Sun Pharmaceutical Industries’ rapidly growing Global Specialty portfolio, which includes innovative products in dermatology, ophthalmology, and onco-dermatology, contributes to more than 18% of the company’s sales.

On May 31, 2024, the share price of Sun Pharmaceutical Industries Ltd opened at ₹1,465.00, touching the day’s high at ₹1,479.40, as of 9:46 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.