Advanced Enzyme gains on acquiring 51% stake in SSPL

Advanced Enzyme Technologies rose 1.63% to Rs 330.40 after the company said its board on 26 December 2020 approved investments of Rs 31.62 crore in SciTech Specialties for a 51% stake.

Advanced Enzyme will subscribe 4,92,630 equity shares of SciTech Specialties (SSPL) via preferential issue and purchase 27,778 from selling shareholders of SSPL, aggregating to 5,20,408 shares.

SSPL is a contract manufacturing company with niche technology specialising in effervescent granules and tablets. It is focused on animal health, pharma and nutraceutical. SSPL has two manufacturing facilities for nutraceuticals and pharmaceuticals. Regulatory approvals include approvals from from FSSAI, WHO cGMP and other accreditation from International agencies like Codex, FSMP, GSFS.

According to Advanced Enzyme, the acquisition synergises and fits in with its move to expand its B2C business. The company said Indicative time period for completion of the acquisition is 31 January 2021.

SciTech Specialities had reported net profit of Rs 1.62 crore, sales of Rs 19.04 crore and EBITDA of Rs 4 crore in H1 FY21.

Advanced Enzymes is a research driven company with global leadership in the manufacturing of enzymes. On a consolidated basis, the company's net profit jumped 20.2% to Rs 37.19 crore on an 8% rise in net sales to Rs 120.39 crore in Q2 September 2020 over Q2 September 2019.

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