Shares in Strides Arcolab gained over 11 per cent to Rs 719 on Monday as the board of directors of the company approved a merger of Strides Arcolab and Shasun Pharmaceuticals.
Strides Arcolab in a filing to exchanges said, the board of both the companies-Strides Arcolab and Shasun Pharmaceuticals have approved a scheme of amalgamation between the two companies. The combination will create a vertically integrated pharma company of scale with strong presence in front-ended regulated markets, finished drugs, emerging markets branded generics and Institutional business, said the filing.
Under the scheme of merger Shasun Pharmaceuticals will amalgamate with Strides in an all-stock transaction. Shareholder of Shasun Pharmaceuticals will receive 5 equity shares of Strides for every 16 equity shares held by them in Shasun.
The combined entity to be amongst the top 15 listed Indian pharmaceutical companies by revenue with a turnover in excess of Rs 2,500 crore.
Shares in Strides Arcolab closed 8.93 per cent higher at Rs 699 whereas shares in Shasun Pharma closed 1.73 per cent lower at Rs 193.40 apiece on NSE.
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