Nectar Lifesciences Sells API Business and Menthol Assets in Major Strategic Shift

Nectar Lifesciences Ltd has announced two significant asset sales, marking a major transformation in its business portfolio. The company’s board has approved the sale of its active pharmaceutical ingredients (API) and formulations business for Rs 12.7 billion, along with the sale of its menthol assets for Rs 200 million. Both transactions are set to reshape the company’s future direction and financial structure.

 

Key Highlights

 

The API and formulations business, a core segment for Nectar Lifesciences, will be sold to Ceph Lifesciences Private Limited for Rs 12.7 billion. This is structured as a slump sale on a going concern basis, with a business transfer agreement executed on July 7, 2025.

 

The menthol assets, which include manufacturing and related operations, will also be transferred to Ceph Lifesciences for Rs 200 million, plus applicable taxes, under a separate asset purchase agreement.

 

These sales are part of Nectar Lifesciences’ strategy to unlock value from its assets and focus on new growth opportunities. The API business has been a key revenue driver, and its sale represents a significant shift in the company’s operational focus.

 

The transactions are expected to provide liquidity, reduce debt, and potentially enable the company to invest in other high-growth areas or return value to shareholders.

 

The deals are subject to customary closing conditions and regulatory approvals, with completion anticipated in the coming months.

 

Looking Ahead

With these divestments, Nectar Lifesciences is poised to realign its business strategy, streamline its operations, and explore new avenues for growth. The company’s management has indicated that these moves are aimed at strengthening the balance sheet and enhancing long-term shareholder value.

 

Sources: NSE India, BSE India, Economic Times, Moneycontrol, India Filings Digest