Nectar Lifesciences Sells API, Formulations, and Menthol Business to Ceph Lifesciences for ₹1,290 Crore

Nectar Lifesciences Ltd announced on Tuesday the sale of its active pharmaceutical ingredients (API), formulations, and menthol business assets to Ceph Lifesciences Pvt Ltd for ₹1,290 crore, as part of a strategic restructuring to streamline operations and bolster financial stability. The transaction includes a Business Transfer Agreement (BTA) for the API and formulations division, valued at ₹1,270 crore on a slump sale basis, and an Asset Purchase Agreement (APA) for the menthol business assets, valued at ₹20 crore, according to a regulatory filing.

Nectar’s Promoter and Chairman, Sanjiv Goyal, stated, “By divesting mature segments of our business, we are laying the foundation for a focused and agile organisation geared towards innovation and long-term value creation.” The proceeds will be used to repay existing debt, invest in emerging business areas, fund future corporate initiatives, and reward shareholders, subject to regulatory approvals. The deal, expected to close by September 20, 2025, pending customary approvals, will not alter Nectar’s existing shareholding structure.

The Chandigarh-based company, a leading manufacturer of cephalosporin antibiotics with a presence in over 45 countries, aims to reduce its debt burden—reported at ₹770 crore as of March 2024—and enhance shareholder value. Posts on X, including from @IndiaIncFilings and @aoiventures, noted the sale’s alignment with Nectar’s goal to streamline operations, with the API and formulations business accounting for 98% of its revenue. The transaction follows a May 2025 GST appeal order dropping an ₹89.32 crore demand, though a ₹17.06 lakh penalty was upheld.

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