Vaishali Pharma Limited has taken a strategic step towards expanding its presence in the pharmaceutical sector by acquiring a 51.02% stake in Kesar Pharma Limited. The acquisition, approved by the company’s Board of Directors on February 19, 2025, will be executed through a Share Subscription Agreement (SSA) with Kesar Pharma’s promoters and other shareholders.
As part of the deal, Vaishali Pharma will subscribe to 35.89 lakh equity shares of Kesar Pharma, each with a face value of INR 10, amounting to a total investment of INR 20.42 crore. This investment will be completed in multiple tranches through a combination of cash payments and fresh share issuance. The transaction is subject to necessary approvals and regulatory compliances.
Founded in 2011, Kesar Pharma specializes in manufacturing, contract manufacturing, private labeling, and the development of new pharmaceutical formulations. By acquiring a controlling stake in Kesar Pharma, Vaishali Pharma aims to enhance its product portfolio, catering to diverse healthcare needs across various life stages. This move is expected to bolster the company’s market positioning and enable it to enter new pharmaceutical and healthcare product categories.
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While this acquisition strengthens Vaishali Pharma’s growth prospects, investors must assess its current valuation. According to InvestingPro’s fair value feature, the stock’s fair value stands at INR 12.4 per share, indicating a 20.9% downside potential from its current market price (CMP) of INR 15.6.
Investors looking to make informed decisions can leverage InvestingPro’s valuation models, which assess stocks based on multiple financial parameters to provide a realistic and data-driven fair value. This tool helps in identifying whether a stock is overvalued or undervalued, offering deeper insights into investment opportunities.
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Vaishali Pharma’s stake acquisition in Kesar Pharma marks a strategic expansion in the pharmaceutical sector, positioning the company for future growth. However, investors should consider valuation insights before making investment decisions. Using InvestingPro can provide an edge in stock analysis, ensuring well-informed market moves.
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