Laurus Labs plans to invest ₹833 Crore in JV with Slovenian

7 Mar 2025 , 08:53 AM

Laurus Labs announced that it has approved an investment of ₹833 Crore in KRKA Pharma Private Limited, its Joint Venture with KRKA d.d., Novo mesto, Slovenia. At the same time, KRKA d.d. will infuse ₹867 Crore in the JV. The two companies shall maintain the existing shareholding structure of 51:49.

The said investment will be to support land acquisition and covering initial costs for establishing a manufacturing facility under KRKA pharma. KRKA pharma was incorporated in April 2024 and has not commenced operations yet. 

The said transaction falls under related party transactions. However, the same is being carried at arm’s length price.

Laurus Labs informed the bourses that this investment is broadly in line with its strategic growth plans and long-term business objectives. It added that it is making the said investment for acquisition of land and meeting costs to set up a manufacturing facility for producing finished products for the emerging markets. It also plans to target Indian markets.

The company plans to complete this investment by March 31, 2025. It shall make a cash subscription to 83.3 million equity shares of ₹10 each in KRKA pharma.

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