The animal health company Sequent Scientific Ltd.'s shares increased by more than 17 per cent on September 27 following the announcement of a Rs 8,000-crore merger with Viyash Life Sciences.
The stock rang the opening bell at Rs 194.00 per share and went on to touch the day-high as well as the new 52-week high level of Rs 224.68 per share on the national stock exchange.
The shares of Sequent Scientific were trading around Rs 216.00 per share on the Indian stock exchanges.
Thus far, a total of 41.44 million equity shares, amounting to 16.6 per cent of the company's total equity, have exchanged hands on the NSE and BSE. This is the highest the stock has been trading since October 2021.
Share swap ratio
The swap ratio for the merger was disclosed by the companies in the Carlyle Group's portfolio. For every 100 Viyash equity shares, Sequent shareholders will receive 56 equity shares, and after the plan is implemented, Sequent will be the only listed company still in existence.
]Valuation of merged entity
With its capital base expanded, the combined entity will be valued at around Rs 8,192 crore at Thursday's closing price.
According to the disclosure, Viyash is currently a qualified supplier of intermediates to Sequent for one of the main active pharmaceutical ingredients (API) that Sequent produces for the US market.
Ten of the sixteen manufacturing facilities that the combined companies will own are approved by the US Food and Drug Administration.
Combined entity's capacity
The combined entity will have five times higher manufacturing capacity, six times larger R&D team size, nine times more USFDA facilities, and eight times higher potential for new product filings, according to the companies.
The merger will 'create an integrated business with a strong in-house R&D and manufacturing platform with strengthened supply chain.'In order to maintain market leadership in the animal health sector, turbocharge growth engines. Possibility of seizing expansion in the larger worldwide pharmaceutical market.'
