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Sequent Scientific Ltd and Viyash Lifesciences Private Limited are looking to merge, with the aim of creating a differentiated animal healthcare company with end-to-end capabilities, the two companies said, without divulging financial details. Sequent Scientific stock price was up 16 per cent, on BSE, at ₹222, at 2.19 pm on Friday.
With Viyash’s operating capabilities, this merger will enhance the combined entity’s scale, deepen its Research & Development (R&D) capabilities, strengthen its supply chain, and position the combined entity to become a key player in the pharmaceutical market, a note on the proposed merger said.
The combined entity will have a more robust financial profile, as reflected in its margin profile and balance sheet. “The entity will have a 5x higher R&D talent pool and 9x more USFDA approved manufacturing facilities, which will form a strong operating backbone to serve its customer better,” the note said.
Calling it a transformative step towards creating a company with integrated capabilities in animal health Rajaram Narayanan, Managing Director and Chief Executive of Sequent said, “In order to continue to deliver differentiated value to our customers in times to come, it is imperative to scale up our product development and R&D capabilities to capture the market opportunity we are seeing and to build on our leadership in the animal health market. To strengthen our end-to-end capabilities, we have decided to pursue an inorganic route, and we propose a potential merger with Viyash Lifesciences.”
Haribabu Bodepudi, Chairman and CEO, Viyash, said, the “merger brings together two complementary businesses that share a commitment to innovation, operational excellence, and delivering world-class solutions for our customers. With our combined resources, R&D capabilities, manufacturing capacities, and streamlined supply chain, we are well-positioned to accelerate growth and offer a wider range of high-quality products to our customers.”
The proposed merger is subject to regulatory approvals, including from shareholders, stock exchanges, Competition Commission of India and the National Company Law Tribunal, the note said.
Swap Ratio
On the scheme becoming effective, all shareholders of Viyash will be issued shares of Sequent at the ratio of 56 shares of Sequent for every 100 shares of Viyash, based on the swap ratio. The new shares of Sequent so issued will be traded on the NSE and BSE, it added.
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