Claris Lifesciences today said it will invest Rs 900 crore, which it expects to receive as part of divestment of 80% stake in its infusion business, on various initiatives, including growth of business and pre payment of company's debt.
Last week, the Ahmedabad-based sterile injectables pharmaceutical firm had divested 80% stake in its infusion business for a total consideration of Rs 1,050 crore and has entered into a tripartite joint venture with two Japanese firms for the same.
"Out of the proceeds of Rs 1,050 crore, the company expects to receive net of taxes and expenses proceeds of Rs 900 crore and plans to utilise Rs 300 crore for organic and inorganic growth of the speciality injectables business," Claris said in a BSE filing.
"Rs 300 crore towards a special interim dividend or buyback of shares and Rs 300 crore towards prepaying some of the company's debt," it added.
The company said the entire cash of Rs 1,050 crore will be received upfront on closing of the transaction, which is estimated to be around April-May, 2013.
Claris had executed agreements for a joint venture Claris-Otsuka; with Japan-based Otsuka Pharmaceutical Factory (OPF) and Mitsui & Co Ltd for its infusion business in India and emerging markets.
The joint venture (JV) will include anti-infectives, plasma volume expanders and parenteral nutrition therapies of Claris for India and the emerging markets, it added.
Under the JV agreement, Claris will transfer the infusion business to the JV Claris-Otsuka. OPF will have 60% stake in the JV while Mitsui and Claris will have 20% each, it said.
Shares of Claris were trading at Rs 228 on the BSE in the late afternoon trade, up 4.78% from their previous close.