Suven Pharma zooms 13% as company announces merger with Cohance Lifesciences
At around 10:00 a.m., shares of Suven Pharmaceuticals traded 10.10 per cent or Rs 63.7, higher at Rs 694.6 apiece. The market capitalisation of the company at around the same time stood at Rs 17,852.64 crore.
Shares of Suven Pharmaceuticals gained nearly 13 per cent in trade on Friday, March 1, and touched the day's high of Rs 712 apiece on the BSE. The stock snapped a three-day losing streak after the company announced a merger with Cohance Lifesciences.
At around 10:00 a.m., shares of Suven Pharmaceuticals traded 10.10 per cent or Rs 63.7, higher at Rs 694.6 apiece. The market capitalisation of the company at around the same time stood at Rs 17,852.64 crore.
According to Zee Business Panellist Rakesh Bansal, Suven Pharma stock has strong resistance at Rs 690 / Rs 700 levels and support at Rs 620 / Rs 625.
On Thursday, after market hours, Suven Pharma, through a regulatory filing, announced a scheme of amalgamation with Cohance Lifesciences.
"Suven Pharmaceuticals Limited (“Suven”) and Cohance Lifesciences Limited (“Cohance”) today, announced a proposed scheme of amalgamation for the merger of Cohance with Suven. This marks a pivotal moment in Suven's journey, underscoring our commitment to scaling, ensuring consistent earnings, fortifying our financial standing, and advancing towards forging leadership in the integrated CDMO space," the filing read.
Merger details
As per the terms of the merger, Cohance shareholders will get 11 equity shares of Suven for every 295 shares held in Cohance. The transaction will be completed in 12 to 15 months.
After the merger, Advent International, which owns both companies, shall own 66.7 per cent and the public shareholders will hold 33.3 per cent of the combined entity.
The purpose behind the merger is to strengthen Suven’s CDMO industry leadership position with niche capabilities and scale benefits, provide multiple engines of growth, provide access to good manufacturing practice (GMP) facilities, and yield revenue and cost synergies.
CDMO stands for contract development and manufacturing organisations.
Suven Pharma share price: Past performance
In a year, shares of Suven Pharma have gained over 44 per cent against Nifty50's rise of over 27 per cent.
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