Cipla to invest Rs 26 crore in Achira Labs' preference shares

16 May 2024 , 03:47 PM

Cipla stated on Wednesday that it has inked definitive agreements for an additional investment of up to ₹26 Crore in Achira Labs’ optionally convertible preference shares.

The investment will be made in four tranches, depending on the accomplishment of specified objectives. After the completion of the first tranche of investment, Cipla will own 27.27% of Achira’s voting rights.

In June 2022, Cipla paid ₹25 Crore for a 21.05% share in Achira Labs. Cipla stated that Achira has achieved tremendous progress in product development and R&D.

Achin Gupta, CEO, One India Business, Cipla, stated “The Company’s decision to infuse more funds in Achira is supported by its commitment to expand in the PoC diagnostics space.”

Gupta further said that Cipla’s strategic financing will enable Achira to commercially launch and further develop test panels.

Dhananjaya Dendukuri is the founder of Bengaluru-based Achira, which produces regulatory-approved medical diagnostic devices using microfluidic technology that requires only a small number of blood samples and chemicals.

Cipla primarily develops drugs to treat respiratory disease, cardiovascular disease, arthritis, diabetes, depression, and a variety of other medical diseases.

The Hamied family, the promoters of pharmaceutical giant Cipla, sold 2.53% of the company’s stock in a block deal to various investors on Wednesday, including Aditya Birla Sun Life Mutual Fund, and ICICI Prudential Mutual Fund, among others.

The ₹2,637 crore revenues will be used for “creating liquidity” for certain objectives, including philanthropy, the Mumbai-based drugmaker said in a regulatory filing. According to market records, ICICI Prudential Mutual Fund acquired shares worth ₹743 crore, while Aditya Birla Sun Life Mutual Fund purchased shares for ₹309 crore.

At around 12.58 PM, Cipla was trading 0.26% higher at ₹1,410.40 per piece, against the previous close of ₹1,406.70 on NSE. The counter touched an intraday high and low of ₹1,414.50, and ₹1,387.30, respectively.

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