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Strides Pharma Global Pte. Ltd. (SPG), a step-down subsidiary of Bengaluru-based Strides Pharma Science Ltd., has received Rs 525 crore (A$ 394 million) as deferred consideration for the sale of the company’s operations in Australia in 2019.

The company will utilise the proceeds for deleveraging the balance sheet, the pharma major said in a stock exchange filing on Thursday.

Strides exited its investments in Australia for A$394 million in 2019. It received A$300 million immediately on the transaction's closing, and the same was used towards deleveraging of the balance sheet. The remaining A$94 million was a deferred consideration backed by a secured interest-bearing instrument.

Strides Pharma continues to be a preferred supplier to Arrotex, which is the largest generic company in Australia.

The company's founder and executive chairperson Arun Kumar said that they are confident of meeting their guided debt reduction of Rs 1,000 crore, most of which will occur during the second half of the current financial year. Some forex adjustments may lead to a small elevation in debt to the tune of Rs 200 crore. Kumar further said that reducing inventory levels will lead to improved cash flows.

The Singapore-based Strides Pharma Global Pte. Ltd. is also the international headquarters for Strides Pharma Science Ltd, which is a B2C focused global pharmaceutical company that mainly operates in the regulated markets of the United States, Australia, Europe and Canada.

Shares of Strides Pharma are off the day's high, currently trading 1.3 percent higher at Rs 371.15.

First Published:Dec 22, 2022 2:08 PM IST