Granules India's Board Approves Restructuring Plan Involving US Subsidiaries

The board of Granules India Ltd on Tuesday approved an internal restructuring plan involving its existing wholly owned subsidiaries located in the USA. The company is to restructure to simplify the organisation structure or operating model and to achieve business consolidation, according to an exchange filing.

"Granules USA, Inc. will transfer its business and substantially all of its net assets to Granules Pharmaceutical, Inc., to facilitate the transaction," the company said.

The company's plan is expected to reduce the number of legal entities, simplify the legal, tax, and operational structures, create a unified holding structure, and improve the market focus.

"The restructure plan, involving existing wholly owned subsidiaries of the company, will not result in any change in the ultimate ownership of the company over its subsidiaries or in the nature of the business carried out in the US," the filing said.

The restructuring will be accounted for as a common control transaction, at carrying values, in the books of the company.

The restructure plan has no benefit to the promoter or promoter group companies.

Additionally, in a separate notification, the company announced the appointment of PN Baskaran as President – Head of API Manufacturing and Operations with effect from April 2, 2025. He has been designated as one of the SMPs of the company, as per the filing.

Shares of Granules India closed 1.24% lower at Rs 505.10 apiece, compared to the 0.04% advance at the benchmark NSE Nifty 50.

Six out of the seven analysts tracking the company have a 'buy' rating on the stock and one recommends a 'hold', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 28.5%.

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