Lupin's Shares Surge on Strategic Business Transfer Move

12 Sep 2023 , 02:20 PM

Lupin’s shares opened 1.3 % higher on the NSE on September 12, following the announcement of a business transfer agreement. The agreement involves Lupin transferring two APIs manufacturing sites to its subsidiary, LMSL, and carving out specific R&D operations. This strategic move is expected to generate proceeds of Rs 750-850 crore, subject to working capital and other factors. The formal agreement is set to be finalized in October 2023.

Lupin, headquartered in Mumbai, specializes in branded and generic formulations, APIs, and advanced drug delivery systems. The company has a global presence with 15 manufacturing facilities and seven R&D centers.

In Q1FY24, Lupin reported a substantial 28.6 % year-on-year increase in revenue, totaling Rs 4,814 crore. The net profit for the quarter amounted to Rs 453 crore, a significant improvement compared to the net loss of Rs 87 crore in Q1FY23.

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