The Board of Strides Pharma on Monday, September 25, approved a scheme of arrangement amongst Strides Pharma Science Limited and Steriscience Specialties Private Limited and Stelis Biopharma Limited, the pharmaceutical company said in a BSE filing.

Share Market Live

NSE

The proposed demerger will be completed by April 1, 2024. The scheme of arrangement will comprise of —

a) Demerger of the ‘identified CDMO and Soft Gelatin Business of Strides’ into Stelis

b) Demerger of the ‘identified CDMO Business of Steriscience’ into Stelis

Strides Pharma shareholders will get one share of Stelis Biopharma for every two shares held in the company. The pharma company will give 1,515 shares of Stelis for every one share in Steriscience Specialties.

There will be no change in the shareholding pattern of Strides and Steriscience. The promoter stake in Stelis will rise to 39 percent From 29 percent post the scheme.

The scheme is subject to necessary approvals including that from the Securities and Exchange Board of India (SEBI), the shareholders and creditors of the company and the National Company Law Tribunal (NCLT), the pharmaceutical company said.

As part of the scheme, the resultant entity is proposed to be listed on both NSE and BSE in the next 12 to 15 months, Strides Pharma said.

"This is an NCLT process considering that it is a fairly complex merger and demerger between companies. It takes between 12 and 15 months at the outer, for this to be converted into shares in the hands of the shareholders," said Arun Kumar, MD and Grp CEO at Strides Pharma.

On capital infusion, Kumar said, "We have no plans that this division requires any incremental cash to grow. So at this time, there's no fundraising plans in this division."

Shares of Strides Pharma settled 8.21 percent higher at Rs 539.70 apiece on the NSE. The stock has rallied 92 percent in the last six months and has risen 23 percent in one month.

First Published:Sept 25, 2023 3:43 PM IST