Eight Roads Ventures, F-Prime Capital to acquire 8 pc stake in Alkem Laboratories' arm

Alkem Laboratories Ltd on Friday said Eight Roads Ventures and F-Prime Capital will acquire 8 per cent stake in its arm Enzene Biosciences Ltd for Rs 161.48 crore.

The company has entered into a securities subscription agreement and shareholders' agreement on Friday with Enzene Biosciences Ltd, Eight Roads Ventures and F-Prime Capital for the purpose, Alkem Laboratories said in a regulatory filing.

The transaction is expected to be completed latest by January 31, 2023, subject to fulfillment of conditions precedent as described in the securities subscription agreement, it added.

On the objective of the transaction, Alkem said it is aimed at providing funding to propel capacity expansions in India and the US.

Enzene is engaged in research and development, manufacturing and out licensing of biosimilar products. It is also into contract development and contract manufacturing for biosimilars, novel biologics, within India and outside India.

It had a turnover of Rs 87.21 crore in 2021-2022, the company said.