PI Industries Shares Up 9.6% As It Enters API, CDMO Space After Twin Acquisition 

Shares of PI Industries Ltd. rose the most in nearly 21 months as it announced a twin acquisition into the active pharmaceutical ingredient and contract development and manufacturing organisation space.

The company’s wholly owned subsidiary, PI Health Sciences, will acquire the Indian subsidiary of Therachem Research Medilab—TRM India—for $42 million, or Rs 343.37 crore.

Furthermore, the company will acquire Solis Pharmachem for $3 million, or approximately Rs 24.53 crore, along with Archimia for 34.2 million euros, or approximately Rs 307.81 crore.

Additionally, PI Health Sciences will acquire employees, contractors, and certain identified movable and immovable assets with intellectual property rights from TRM US. These assets will be acquired by paying an upfront amount of $5 million, or approximately Rs 40.88 crore, on the date of consummation of the transaction.

Shares of PI Industries Ltd. gained 9.60% to Rs 3,360 apiece as of 11:34 a.m. in trade on Friday, compared to a 0.18% advance in the benchmark NSE Nifty 50 Index.

The stock rose as much as 12.94% intraday, the most in nearly 21 months since Aug. 2, 2021. Total traded volume stood at 20.4 times its 30-day average. The relative strength index was at 71, implying that the stock may be overbought.

Out of the 28 analysts tracking the company, 21 maintain a 'buy' rating, five recommend a 'hold,' and two suggest to 'sell' the stock, as per the Bloomberg data.

The average calculated from the 12-month price target given by analysts implies a potential upside of 11.3%.