Strides Pharma CDMO arm gets Rs 801 cr from investors in pre-listing round

Strides Pharma Science on Wednesday said its associate firm has received equity commitment of Rs 801 crore from domestic and foreign institutional investors in the pre-listing round.

OneSource Specialty Pharma, the contract development and manufacturing organisation (CDMO) arm of the company, has received confirmed capital infusion commitments from investors, Strides Pharma Science said in a statement.

The share subscription agreements are being executed at a pre-money equity value of $ 1.65 billion, it added.

The fundraise is in line with the scheme of arrangement announced in September 2023 and the investment is subject to customary closing conditions, including receipt of necessary regulatory approvals, the company said.

"This fundraise will enable us to accelerate our growth plans, right-size our debt book, and commit significant new capex for a strong order book across our three platforms," Strides Group Founder Arun Kumar said.

In September last year, Strides announced the creation of OneSource by integrating Stelis' Biologics CDMO, SteriScience's Complex Injectables, and Strides' Soft Gelatine businesses in a single entity by way of scheme of arrangement.

As part of the scheme, Strides shareholders are to receive 1 share of OneSource for every 2 shares of Strides (swap ratio of 1:2).

OneSource is in the process of seeking final approval for the scheme from NCLT, Mumbai Bench, to thereafter achieve the listing of equity shares by March 2025, upon receipt of regulatory approvals.

Shares of Strides Pharma were trading 2.93 per cent up at Rs 1,611.60 apiece on the BSE.