Prism Medico and Pharmacy Limited announced a strategic investment of up to ₹230 crore in equity shares of M/s. Infuze Well Private Limited. This investment will result in Prism Medico acquiring a controlling stake, making Infuze Well a subsidiary. The funds will support Infuze Well’s large-volume parenteral manufacturing facility. The transaction aims to leverage synergies and strengthen Prism Medico’s position in the pharmaceutical sector.
Strategic Investment in Infuze Well
Prism Medico and Pharmacy Limited has proposed a substantial strategic investment of up to ₹23,00,00,000 (₹230 crore) in the equity shares of M/s. Infuze Well Private Limited. This move is set to acquire a controlling stake in Infuze Well, thereby making it a subsidiary of Prism Medico and Pharmacy Limited. The investment is intended to bolster the company’s presence and growth within the pharmaceutical manufacturing sector.
Rationale and Project Funding
The investment aims to accelerate Prism Medico’s manufacturing capabilities by acquiring a controlling interest in Infuze Well, which is establishing a Large Volume Parenteral (LVP) manufacturing facility. This is considered a faster route to augmenting capacity compared to a greenfield project. The funds will be utilized by Infuze Well Private Limited for its project, including capital expenditure on plant and machinery, civil construction, and repayment of existing borrowings. This strategic investment is expected to create operational and financial synergies, supporting long-term business growth.
Related Party Transaction
The transaction is classified as a material related party transaction, given that Mrs. Sakshi Laller, Whole-Time Director of Prism Medico, is also a promoter and director of Infuze Well Private Limited. Upon completion, Prism Medico will hold approximately 71.32% of Infuze Well’s paid-up equity share capital. This transaction, valued at ₹230 crore, exceeds the materiality threshold as per SEBI Listing Regulations, requiring shareholder approval.
Source: BSE
