India's IPCA Labs falls most in nearly 3 years on stake buy in Unichem

Ipca Laboratories

25/04/2023 05:21

** Shares of IPCA Laboratories Ltd  IPCA.NS  fall as much as
9.1% to 751 rupees, their lowest since June 8, 2020
    ** Co said on Monday it approved entering into definitive
share purchase agreement for acquisition of 33.38% stake in
Unichem Laboratories Ltd  UNLB.NS  for a deal worth 10.34 bln
rupees ($126.27 mln)
    ** IPCA also approved making an open offer to public
shareholders of Uncihem labs to acquire up to 26% stake for 8.05
bln rupees
    ** The acquisition is expensive, given increased competition
in the U.S. generics oral solids space, rising regulatory risks
and strong efforts needed to turn around Unichem, analysts at
Motilal Oswal say
    ** However, Unichem's formulation capacity supported by
USFDA compliant facilities should help IPCA funnel its product
pipeline, analysts add
    ** Shares of Unichem Laboratories up as much as 1.7% to
394.7 rupees
    ** More than 985,300 shares of IPCA change hands vs 2.9x
30-day avg of 348,545 shares
    ** Analysts covering the stock on average have "hold"
rating; median PT is 911 rupees - Refinitiv data
    ** Stock down ~2% YTD, as of last close


     ($1 = 81.8890 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru)
 ((AshnaTeresa.Britto@thomsonreuters.com ; ( +91 8078332441))