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Jubilant Pharmova board approves slump sale of API business to subsidiary Jubilant BiosysThe API division recorded a turnover of ₹609 crore in FY25, accounting for 8.35% of the company’s consolidated revenue. Its net worth stood at ₹666.5 crore as of March 31, 2025, contributing 10.68% of the company’s consolidated net worth. Shares of Jubilant Pharmova Ltd ended at ₹1,125, down by ₹19.90, or 1.74%, on the BSE.By Jomy Jos Pullokaran   June 12, 2025, 9:23:21 PM IST (Published)2 Min ReadJubilant Pharmova Ltd said on Thursday (12 June) that its board has approved the sale and transfer of its active pharmaceutical ingredient (API) business to its wholly-owned subsidiary, Jubilant Biosys Ltd, on a slump sale basis.

"...the board of directors of Jubilant Pharmova in its meeting held today, i.e., June 12, 2025, at 03:00 P.M. and concluded at 03:28 p.m., inter alia, considered and approved sale and transfer of the Active Pharmaceutical Ingredients (API) business of the company (Undertaking) on a slump sale basis to Jubilant Biosys Limited (JBL), a wholly-owned subsidiary company, engaged in providing drug discovery services to global Pharmaceutical and Biotech companies," according to a stock exchange filing.

The API division recorded a turnover of ₹609 crore in FY25, accounting for 8.35% of the company’s consolidated revenue. Its net worth stood at ₹666.5 crore as of March 31, 2025, contributing 10.68% of the company’s consolidated net worth.

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The transfer is expected to be completed by September 1, 2025, subject to the terms set out in the business transfer agreement. The consideration for the transfer will be based on the book value of assets and liabilities as on the appointed date. The transfer will be done primarily through the issuance of shares.

The transaction qualifies as a related party deal since Jubilant Biosys is a wholly-owned subsidiary. However, the company said the transaction is being executed at arm’s length.

The sale is being carried out outside a Scheme of Arrangement, and compliance with Regulation 37A of the SEBI Listing Regulations is not required, as Jubilant Biosys' accounts are consolidated with those of Jubilant Pharmova.

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Shares of Jubilant Pharmova Ltd ended at ₹1,125, down by ₹19.90, or 1.74%, on the BSE.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsJubilant Pharmovashare market today