Strides Pharma Science Ltd. said its contract development and manufacturing arm OneSource Specialty Pharma Ltd. has received confirmed investment commitments of Rs 801 crore from marquee domestic and foreign institutional investors and family offices, in the pre-listing round.
The fundraise is being led by HBM Healthcare Investments and associated investors, with the additional participation from WhiteOak Capital, Param Capital, Motilal Oswal, Enam Holdings and SBI Life Insurance Co., the company said in a statement on Wednesday.
Share subscription agreements are being executed at a pre-money equity value of $1.65 billion, providing Strides’ shareholders with an embedded value of Rs 663 per share in OneSource. This represents an 82% premium over the previous embedded value of Rs 364 per share, as outlined in the Scheme of Arrangement announced last September.
The investment is subject to customary closing conditions, including receipt of necessary regulatory approvals.
Strides Pharma approved spinning off oral soft gelatin contract manufacturing business into Stelis Biopharma last year, to build a one-of-a-kind specialty pharmaceutical CDMO business with capabilities in biologics, oral soft gels, complex injectables, sterile injectables, and other complex drug delivery systems. The new entity is called OneSource.
Strides Pharma intends to list OneSource on both exchanges—BSE and NSE—by March next year. The unit is in the process of seeking final approval for the scheme from National Company Law Tribunal.
The fundraise will enable the company to accelerate growth plans, right-size debt book, and commit significant new capex for a strong order book across three platforms, said a statement from Arun Kumar, founder of Strides Group, and Neeraj Sharma, CEO of OneSource.
"The transaction will unlock Rs 6,100 crore of value for Strides’ shareholders. The significant premium that will be achieved from this transaction for Strides’ shareholders is a testament to our continued value creation for our stakeholders," said Badree Komandur, MD and Group CEO of Strides.
The company also informed the business updates of OneSource will be part of its second quarter earnings reporting scheduled for the later part of October.
Strides Pharma Share Price Movement
Strides Pharma stock has risen 145% in the last 12 months and 211% on a year-to-date basis.
Strides Pharma stock has risen 145% in the last 12 months and 211% on a year-to-date basis.
Strides Pharma share price was trading 1.8% higher at Rs 1,593.95 apiece as of 9:27 a.m., after the announcement, compared to 0.14% decline in the benchmark Nifty 50.
The stock has risen 145% in the last 12 months and 211% on a year-to-date basis. The relative strength index was at 56.
Two analysts tracking Strides Pharma have a "buy" rating on its stock, as per Bloomberg data.
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