The Punjab Sate Industrial Development Corporation (PSIDC) is planning to sell its 23.14 per cent stake in Ind-Swift Labs (ISLL) to Ind-Swift Ltd. ISL will buy back the stake at a consideration of Rs 8 crores. Ind-Swift Ltd and its associates will purchase about 25,56,600 shares held by the PSIDC at an average price of about Rs 32 per share, which is with a 50 per cent premium to the current market price.
"Our association with the PSIDC had been very successful. The buy-back will be completed under the terms of the collaboration agreement," said V.K. Mehta, joint managing director, Ind-Swift Ltd. Mehta said that "the price has been arrived at a pre-determined formula of market price or average price per share calculated at the rate of interest on investment made by the PSIDC, whichever is higher. We are completely confident of the future potential of the company."
Following the buy back, Ind-Swift will up its stake in ISLL from the present 37 per cent to over 60 per cent. As both the companies are in different segments like APIs and formulations respectively, the synergy will help the Ind-Swift Group is expected to take advantage of the changing face of the industry in the near future.
Ind-Swift Laboratories was promoted in the joint sector by ISL and PSIDC in 1997. currently Ind-Swift Labs is an ISO 9001:2000 company and one of the largest manufacturer and exporter of the macrolide drugs such as Clarithromycin, Clarithromycin granules, Fexofenadine and Atorvastatin in India. Its customer-base includes companies like Cipla, Wockhardt, Glenmark and Lupin. Besides, the company also supplies APIs to the leading generic manufacturers in the regulated and non-regulated markets.
At present, the company is working on 20 new molecules, which includes drugs from the fastest growing segments of cardiology, oncology, anti-asthmatics, neurology and anti-alcoholics. Four new molecules out of these projects will be commercialized within the current financial year. The company has recently entered into a collaborative research pact with National Institute of Pharmaceutical Education and Research (NIPER). Under the pact, Ind-Swift will jointly work with NIPER for developing new processes and has already filed a joint patent in the therapeutic segment of antithrombotics