Sanofi India Shares Gain Most in 33 Months On Plans To Demerger Its Consumer Health Business
The consumer health business is set to demerge into its wholly owned subsidiary, Sanofi Consumer Healthcare India Limited.
Shares of Sanofi India Ltd. rose the most in 33 months after the board announced a demerger of its consumer health business from its pharma business.
The consumer health business is set to demerge into its wholly owned subsidiary, Sanofi Consumer Healthcare India Limited, according to an exchange filing.
The subsidiary will include all assets and liabilities pertaining to the business, including brands like Allegra, Combiflam, DePURA, and Avil.
The shareholders of Sanofi India will be issued equity shares of Sanofi Consumer Healthcare India at a ratio of 1:1. No other cash consideration will be paid on demerger.
Sanofi Consumer Healthcare India is expected to be listed on both the BSE and NSE.
Sanofi India will continue to own a 60.4% stake in both entities post-merger.
Sanofi India also announced its first-quarter results on Wednesday:
After-tax profits declined 20% to Rs 190 crore. (Bloomberg estimate: Rs 129 crore)
Revenues rose 4% to Rs 737 crore. (Bloomberg estimate: Rs 690 crore.)
Ebidta increased 19% to Rs 230 crore (Bloomberg estimate: Rs 164 crore).
Ebidta margins stood at 31.3% versus 27.5%. (Bloomberg estimate: 23.8%)
Shares of Sanofi rose as much as 8.06%, the most in a day since August 3, 2020. It was trading 7.84% higher at Rs 6,147.45 apiece as of 12:19 p.m. on Thursday, compared to a flat benchmark NSE Nifty 50.
The average traded volume so far in the day was 17.5 times its monthly average.
Of the seven analysts tracking the company, six maintain a 'buy' rating, and one suggests a 'hold', according to Bloomberg data. The average 12-month consensus price target implies a potential downside of 5.6%.
