Strides Pharma to demerge biotech business under Stelis Biopharma
Strides will demerge and list its biotech business under Stelis on a standalone basis enabling significant value unlocking for Strides Shareholders.
Bengaluru: Strides Pharma Science Limited (Strides), Bengaluru headquartered global Pharmaceutical Company on Thursday announced that its Board of Directors have approved in principle the demerger of its biotech business under Stelis Biopharma (Stelis).The demerger is expected to unlock significant value for Strides shareholders.A Committee will be formed to explore various options of...
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Bengaluru: Strides Pharma Science Limited (Strides), Bengaluru headquartered global Pharmaceutical Company on Thursday announced that its Board of Directors have approved in principle the demerger of its biotech business under Stelis Biopharma (Stelis).
The demerger is expected to unlock significant value for Strides shareholders.
A Committee will be formed to explore various options of value discovery including listing of the business on a standalone basis and recommend to the Audit Committee, Committee of Independent Directors and Board including the Scheme, swap ratio and way forward, according to a release here on Thursday.
Stelis is expected to break-even in FY22 and as it enters the growth phase it will need up to USD 100m additionally to fund all its programs over the next 3 years. Promoters will lead the funding for the growth phase at Stelis with a US$50m commitment. As Strides focuses on building its Core Pharma business, it will not participate in the new funding round
Strides will demerge and list its biotech business under Stelis on a standalone basis enabling significant value unlocking for Strides shareholders·
Strides is also considering retaining a minority treasury investment in Stelis, thereby enabling it to participate in the growth phase and to recoup its capital, with the balance of its holding in Stelis being distributed to its shareholders in proportion to their holdings.
The transaction is subject to approval from shareholders, meeting customary closing conditions and is expected to achieve closure in over 12 months.
Eminent corporate doyen Aditya Puri joins Stelis Biopharma Board and will be the Chairman of the Board.
Recognised as a stalwart of the Indian banking and financial services industry, Mr. Puri was the iconic founder-Managing Director and Chief Executive Officer of HDFC Bank from its inception in 1994 until his retirement from the position in October 2020.
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