InvestorQ : Why has Ind Swift Laboratories sold its API business?
Niti Shenoi made post

Why has Ind Swift Laboratories sold its API business?

ishika Banerjee answered.
1 year ago

Ind-Swift Laboratories has agreed to sell its Active Pharmaceutical Ingredients or API business to PI Industries, one of India’s top agrochemicals manufacturers, for enterprise value of Rs.1,530 crore. The API business of Ind-Swift had an annual turnover of Rs.857 crore for FY21. The sale deal is expected to close on around October this year. While the board has approved the deal, shareholder approval and regulatory approval is pending.

It is rather surprising that Ind-Swift has opted to sell out of API, a business where most of the global PE funds are also investing heavily in Indian API companies. This segment has a huge potential due to the supply chain disruptions caused by China. The rationale for the slump sale was to raise funds and repay all debt exposure towards making the company debt-free. The surplus funds, if any, will be used for inorganic expansion. Business.