Nectar Lifesciences shares drop 18% after announcing sale of core business for ₹1,270 crore

Nectar Lifesciences Ltd. on Tuesday, July 8, said it has signed a definitive business transfer agreement for the sale of its core business division to Ceph Lifesciences Pvt Ltd. for ₹1,270 crore on a slump sale basis.

Nectar Lifesciences' core business division comprises the manufacture, distribution and marketing of active pharmaceutical ingredients (APIs) and formulations.

The company said it also entered into an asset purchase agreement (APA) for the sale of its menthol business to Ceph Lifesciences for ₹20 crore.

The transaction is expected on or before September 20, 2025, subject to customary approvals. There will be no change in the company's shareholding pattern.

Nectar Lifesciences said the transaction forms a part of its long-term strategy to streamline its operations, strengthen its financial position and unlock value for shareholders.

The proceeds from the sale will be used to repay existing debt, invest in new and emerging business areas, reward shareholders (subject to applicable approvals) and fund future corporate and growth initiatives.

"By divesting mature segments of our business, we are laying the foundation for a focused and agile organisation geared towards innovation and long-term value creation," Sanjiv Goyal, the promoter and chairman of Nectar Lifesciences, said.

The transaction is also subject to approval from existing shareholders, which will be sought during the company's Extraordinary General Meeting (EGM) on August 4, 2025.

Shares of Nectar Lifesciences were down 18.2% at ₹18.92 apiece at 9.35 am on Tuesday, July 8. The stock has declined 52.4% this year, so far.

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