Mumbai based pharma company Wockhardt Limited is in talks with pharma companies for divesting stake in the company. Adar Poonawalla’s Serum Institute of India is the front runner in the race to buy around 10 percent stake for around Rs 700 crore.

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A source close to the development told Zee Business “Company is in preliminary discussion with pharma company. However, Serum Institute also shown the interest and can buy around 10 percent stake in the company in worth of approx. Rs 700 crores”. 

 

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Another source told Zee Business “Wockhardt is already manufacturing AstraZeneca (COVID-19 Vaccine) in the United Kingdom and Sputnik V in Indian manufacturing unit. So, it is good if Serum takes stake in the company and use manufacturing facility of Wockhardt”. 

A source cited above told Zee Business “Wockhardt may issue preferential shares to buyers for selling stake”. 

 

A person who tracks Pharma told Zee Business “Serum Institute’s manufacturing could be running on their higher capacity due to Covishield manufacturing. And now they require manufacturing facility for their other vaccines which they can get by buying stake in Wockhardt”. 

A person further added that “Serum Institute has huge cash on their books also”. 

Zee Business had sent a query mail to Serum Institute and Wockhardt on Tuesday but they have not responded on the story yet. 

In September, Serum Institute announced strategic alliance with Biocon Biologics Limited (BBL), a subsidiary of Biocon Ltd. 

BBL has offered approximately 15 percent stake to Serum Institute Life Sciences Private Limited (SILS), at a post-money valuation of $4.9 billion, for which it will get committed access to 100 million doses of vaccines per annum for 15 years, primarily from SILS’s upcoming vaccine facility in Pune with commercialization rights of the SILS vaccine portfolio (including COVID-19 vaccines) for global markets.

In February, Adar Poonawalla-controlled Rising Sun Holdings has announced to acquire 60 percent stake in non-banking financial company (NBFC) Magma Fincorp by subscribing to Rs 3,456-crore preferential issue.

(Reported by: Tarun Sharma and Brajesh Mishra)