In a conversation with Zee Business Managing Editor Anil Singhvi, Swati Khandelwal, Executive Editor at Zee Business informed that according to the sources the promoters of Nectar Lifesciences are planning to sell their shares of the company.

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"Nectar Lifesciences is the company to be focused upon as according to the sources, the promoters of the company are planning to sell their entire stake which is of around 55.8 percent," Swati said.

 

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She added that the entire promoters stake is currently 100 percent pledged as of June 2021. As per the sources that talks are going on with some big private equity firms. The decision is being made regarding the valuations, how much money the company and the promoters want to raise, she said.

"Nectar Lifesciences is a pharma company, mid-size company and is in API's. The demand of the company has also increased so they are expecting that they will get a good valuation and the deal is expected to happen at a premium from the current rate," Swati added.

 

Talking about another interesting aspect she said, sources have informed that big international companies that is MNC pharma companies are in talks with the company for contract manufacturing by forming a joint venture (JV). She further said that the company has confirmed that it is in talks with 3-4 big companies. However, the company has given no response on overall MNA activity.

Speaking on the topic Market Guru Anil Singhvi said it can be interesting news for the shareholders of Nectar Lifesciences if this type of development takes place. He said if the deal happens it will happen at a premium.

Explaining the reason behind it he said that the company has a market cap of around Rs 1,200 crore and sales of around Rs 1,800 crore so minimum one time sales will happen. 

Speaking on why the deal can happen the Market Guru said that as Swati said promoters have already taken a loan on their entire stake which means that if the promoters will get a good opportunity and good price then they can think of leaving.

Swati, speaking on managements response said that the management of the company has said that they are in talks from the point of view of joint venture and yes they are talking to 3-4 pharma companies. The management of the company also said that they are not in a hurry but they are open to ideas.