Nectar Lifesciences hits 52-week low; why are investors dumping stock?

Nectar Lifesciences share price hit 52-weel low at ₹18.6 per share; here's why the stock is under pressure

Nectar Lifesciences share price hit a 52-week low at ₹18.6 per share, slipping 19.6 per cent in trade. At 10 AM, Nectar Lifesciences shares were trading 16.62 per cent lower at ₹19.31 per share on the BSE. In comparison, the BSE Sensex was up 0.04 per cent at 83,478.31.

 

The company's market capitalisation stood at ₹ 432.6 crore. Its 52-week high was at ₹56.39 per share.  CATCH STOCK MARKET LATEST UPDATES TODAY LIVE

Why were Nectar Lifesciences shares under pressure?

The selling pressure came after the company's move to sell off its core business division to Ceph Lifesciences Private Limited disappointed investors. 

 

In the exchange filing the company said that it has inked a definitive Business Transfer Agreement (BTA) for the sale of its core business division—comprising the manufacture, distribution, and marketing of active pharmaceutical ingredients (APIs) and formulations—to Ceph Lifesciences Private Limited, for a consideration of ₹1,270 crore, on a slump sale basis.

 

Additionally, the company has entered into an Asset Purchase Agreement (APA) for the sale of its menthol business assets to Ceph Lifesciences for ₹20 crore, marking a comprehensive restructuring move aligned with its future strategy. 

 

"By divesting mature segments of our business, we are laying the foundation for a focused and agile organisation geared towards innovation and long-term value creation," Nectar Lifesciences Promoter and Chairman Sanjiv Goyal said.

 

The proceeds from the sale will be used to: repay existing debt, invest in new and emerging business areas, reward shareholders, subject to applicable approvals, and fund future corporate and growth initiatives. 

 

The transaction was approved by the company’s board on July 7, 2025, and is subject to shareholder approval at the Extraordinary General Meeting (EGM) to be held on August 4, 2025.

 

The transaction is expected to be completed on or before September 20, 2025, and there will be no change in the company’s existing shareholding.   ALSO READ | Titan shares tumble 5% as Q1 update disappoints street; Should you buy?

About Nectar Lifesciences Limited

Nectar Lifesciences Ltd. is an established pharmaceutical company focused on research-driven innovation, manufacturing, and global distribution. The company is listed on the NSE and BSE and is committed to enhancing stakeholder value through disciplined strategy and operational excellence.