Drug firm Laurus Labs Ltd on Thursday (March 6) said it has approved an ₹833-crore investment in KRKA Pharma Private Limited, its joint venture with KRKA d.d., Novo mesto, Slovenia. Simultaneously, KRKA d.d. will invest ₹867 crore, maintaining the existing 51:49 shareholding structure between the two companies.
“…we would like to inform you that the Board of Directors of the company at their Meeting held today i.e., Thursday, 06th March, 2025, inter-alia, have approved for investment of an amount of INR 833,000,000/- (Indian Rupees Eight Hundred and Thirty Three Million only) in KRKA Pharma Private Limited (“KRKA”), a joint venture of the company,” Laurus Labs said in a regulatory filing.
The investment will support land acquisition and initial costs for setting up a manufacturing facility under KRKA Pharma, which was incorporated in April 2024 and is yet to commence operations. The transaction falls under a related party transaction but is being conducted at arm’s length.
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“The purpose of this investment is to acquire land and to meet the initial cost of setting up a manufacturing facility for the production of finished products for the new markets, including the Indian market. This investment aligns with the company’s strategic growth plans and long-term business objectives,” Laurus Labs said.
Laurus Labs’ investment will be completed by March 31, 2025, through a cash subscription to 83.3 million equity shares of KRKA Pharma at ₹10 per share.
Shares of Laurus Labs Ltd ended at ₹580, up by ₹13.45, or 2.37%, on the BSE.
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(Edited by : Shoma Bhattacharjee)
