Shilpa Medicare divests 31% stake in Sravathi for INR 49.6 crores

Shilpa Medicare Limited has executed agreements to sell 31% of its stake in Sravathi Advance Process Technologies Pvt Ltd (Sravathi) for a consideration of INR 49.6 crores. The buyers are Ash Ingredients Inc. and Varcatalyst LLP. This transaction is subject to customary closing conditions.

The divestment aims to bring strategic and financial partners to bolster Sravathi, a company focused on advanced differentiated process technologies and research and development. Following the transaction, Shilpa Medicare's holding in Sravathi will decrease from 65% to 34%. Ash Ingredients will hold 22%, and Varcatalyst 9%. The remaining 35% will continue to be held by Technocrats.

The agreement includes provisions for Ash Ingredients Inc. and Varcatalyst LLP to appoint one director each to the board of Sravathi, alongside other standard terms for the operation and management of the company. These new agreements will supersede the previous Joint Venture agreement dated June 7, 2019.