Suven Pharmaceuticals Acquires Majority Stake in Sapala Organics for Rs 229.5 Crore

Suven Pharmaceuticals announced its acquisition of a 67.5 percent stake in Hyderabad-based Sapala Organics for Rs 229.5 crore. This move, pending customary conditions, signifies Suven's expansion into niche technologies like Oligo and nucleic acid building blocks. The acquisition is expected to be fully completed after FY2026-27.

In a strategic move, Suven Pharmaceuticals revealed on Thursday its plan to acquire a 67.5 percent stake in Sapala Organics, headquartered in Hyderabad, for a substantial Rs 229.5 crore.

As a leading player in the country's integrated contract development and manufacturing sector, Suven has solidified a definitive agreement for this notable investment, as stated in a regulatory filing.

The acquisition price is subject to customary working capital and net debt adjustments. Suven plans to complete the acquisition of the remaining equity stake post FY2026-27, contingent on standard closing conditions.

Sapala Organics, known for its presence in the burgeoning Oligo and nucleic acid building blocks segment, recorded a revenue of around Rs 67 crore for FY24.

Suven's Executive Chairman, Annaswamy Vaidheesh, emphasized the massive growth potential, citing the innovative technology’s promise in genetic-level disease targeting and treatment.

Further, P Yella Reddy, Sapala's Founder, expressed optimism that the partnership with Suven will propel the company to new heights and offer significant opportunities for employee growth.

On a related note, Suven Pharma's shares closed 0.63 percent lower at Rs 667.25 on the BSE.