Shares of Strides Pharma Science Ltd. tumbled after its biological unit agreed to sell its multi-modal manufacturing facility in Bengaluru.
Stelis Biopharma Ltd., the biologics division of Strides Pharma, said it has signed a binding term sheet with Syngene International Ltd. to sell its multi-modal manufacturing unit 3 facility in the Bommasandra industrial area of Bengaluru for Rs 702 crore in a slump sale, according to an exchange filing. Subject to usual conditions, such as gaining necessary lender and regulatory clearances, the deal is anticipated to close in 90 days.
Syngene will further invest up to Rs 100 crore to repurpose and revalidate the facility. The site will have a manufacturing capacity of 20,000 litres of installed biologic drug substances.
Shares of the company declined 6.33% to Rs 453 apiece, compared to a 0.05% decline in the Nifty 50 as of 10:04 a.m.
The total traded quantity so far in the day stood at 3.9 times the 30-day average volume. The stock's relative strength index stands at 65.28, indicating that the stock is neither overbought nor oversold.
All four analysts tracking the stock maintain a 'buy' rating on the stock, according to Bloomberg data. The consensus price estimate indicates a 4.9% upside over the next 12 months.
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