Laurus Labs announced yesterday that it has signed a definitive agreement to acquire 72.55% of Richcore’s shares from Eight Roads Ventures and VenturEast.
This has been acquired for a value of Rs. 247 crore. Laurus will fund the acquisition from its internal accruals.
The logic behind buying this company? It will help Laurus gain entry into the high barrier, broader biologics and biotechnology segments. It also helps add a fourth revenue stream to its three existing divisions - API, Formulations and Synthesis.
Following the successful closure of the transaction, Richcore will be renamed to Laurus Bio Pvt Ltd.
Following this news, the stock price rose 5% to Rs.298.80 and has come off this level and is currently trading at Rs.292. Its 20% UC for the day is at Rs.342.05 and high is at Rs.345.