Ipca Laboratories shares hit 52-week low after Unichem deal, dive 10% to slip below Rs 750 mark

Shares of Ipca Laboratories Ltd plunged in Tuesday's trade after the company inked a pact to acquire a 33.38 per cent stake in Unichem Laboratories from one of its promotors -- Prakash A Mody -- for Rs 1,034 crore. Mody currently holds a 46.16 per cent stake in Unichem Labs and post this transaction, his holdings would reduce to 12.78 per cent. The stock today dived 10.41 per cent to hit its 52-week low of Rs 739.60 against a previous close of Rs 825.55.

"Ipca Labs has entered into a definitive Share Purchase Agreement (SPA) for the acquisition of 2,35,01,440 fully paid-up equity shares of Rs 2 each, constituting 33.38 per cent of the paid-up equity share capital of Unichem Labs, at a price of Rs 440 per equity share aggregating to Rs 1,034.06 crore," a company exchange filing read.

"The company is also making an open offer to the public equity shareholders of Unichem to acquire from them up to 26 per cent of the fully diluted outstanding equity share capital at a price of Rs 440 per share, under the relevant provisions of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011," the company also said. The proposed transactions are subject to get approval from the fair trade regulator Competition Commission of India (CCI).

Premchand Godha, Promoter and Executive Chairman, lpca Labs said, "This acquisition is in line with our stated strategy to enhance our portfolio in our chosen growth markets. We both are well positioned to successfully integrate our product offerings and grow our businesses."

Prakash Mody, Promoter and Chairman and Managing Director, Unichem Labs said, "For Unichem, employees and customers have been core to its business and I strongly believe, they will benefit from lpca's expertise in providing competitive' and integrated services globally."

A total of 2.01 lakh shares changed hands today on BSE, which was 10 times higher than the two-week average volume of 20,000 shares. Turnover on the counter stood at Rs 15.04 crore, commanding a market capitalisation (m-cap) of Rs 18,771.90 crore.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "At the current juncture, the stock it is trading below all key moving averages. So, fresh longs are not advised as we expect a lower level of Rs 700 in the near term."

AR Ramachandran from Tips2trades said, "Due to a majority stake acquisition in Unichem Labs, Ipca Labs stock price has expectedly opened gap down. A daily close below the support of Rs 767 could lead to a target of Rs 718 in the near term. Resistance will be at Rs 795."

Meanwhile, Indian equity benchmarks turned positive in afternoon deals after a tad lower opening, led by gains in metals, state-owned lenders and energy stocks.

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