Aarti Drugs Limited approved an investment of INR 10,00,00,000 (Ten Crore) in its wholly owned subsidiary, Pinnacle Life Science Private Limited, via a Rights Issue. This transaction, approved on March 7, 2026, is classified as a related party transaction but will be conducted on an arm’s length basis. The funds are earmarked for Pinnacle’s planned expansion/capex and general corporate needs, maintaining Aarti Drugs’ 100% shareholding.
Subsidiary Funding Approved via Rights Issue
The Finance & Investment Committee of Aarti Drugs Limited met on Saturday, March 7, 2026, and sanctioned an aggregate investment up to INR 10,00,00,000 (Ten Crore Rupees) into its wholly owned subsidiary, Pinnacle Life Science Private Limited. The investment will be made by way of subscription to the Rights Issue of Pinnacle.
The proposed acquisition involves subscribing to 78,125 Equity Shares of face value of Rs. 10 each. These shares will be allotted at a significant premium of Rs. 1,270 per share, setting the effective price for the transaction at Rs. 1,280 per share. The total cost of acquisition amounts to the approved Rs. 10,00,00,000.
Transaction Details and Rationale
This transaction qualifies as a related party transaction as Pinnacle is a Wholly Owned Material Subsidiary. However, the company confirms the transaction is being executed on an arm’s length basis. The investment ensures that Aarti Drugs Limited’s percentage of shareholding and control remains unchanged, with Pinnacle continuing as a wholly owned subsidiary post-allotment.
The primary object of the acquisition is to provide capital to Pinnacle for financing its expansion/capex plan and other general corporate purposes. Pinnacle’s business, which is in Pharmaceuticals, aligns perfectly with the core business of Aarti Drugs Limited.
Target Entity Profile: Pinnacle Life Science
Pinnacle Life Science Private Limited (CIN: U24232HP2003PTC030912) was incorporated on January 15, 2003. It is primarily involved in the manufacturing of pharmaceutical formulations, with a diverse portfolio covering oncology, cardiovascular, anti-infectives, and diabetes segments. Pinnacle has a strong international footprint, exporting products to over 30 countries.
Pinnacle’s Recent Turnover (Rs. in Lakhs)
The turnover history demonstrates significant growth:
- 2024-25: 25,392.38 Lakhs
- 2023-24: 31,465.76 Lakhs
- 2022-23: 28,657.44 Lakhs
Completion Timeline
The allotment of the shares is expected to be completed swiftly, with the indication that shares will be allotted on or before March 20, 2026.
Source: BSE
