Business Standard

IPCA Labs stock hits valuation hurdle on Unichem stake acquisition

Improving growth and expanding margins in competitive US market will be key challenges



Ram Prasad Sahu Mumbai

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The IPCA Laboratories stock fell 10.22 per cent on Tuesday and hit a 52-week low as the Street reacted negatively to its 33 per cent stake acquisition in Unichem Laboratories (Unichem) for Rs 1,034 crore. The acquisition from one of Unichem’s promoters at Rs 440 per share – a 14 per cent premium to Monday’s closing price – will be followed by an open offer for an additional 26 per cent.

The company will fund the equity purchase and open offer (Rs 800 crore) through internal accruals. The deal – including the open offer when fully subscribed – will take

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First Published: Apr 25 2023 | 1:15 PM IST

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