Jubilant Life to split pharma business into two subsidiaries
New Delhi: Jubilant Life Sciences is splitting its pharmaceutical business into two subsidiaries with drug development set to become a separate entity and is exploring options to list the pharma vertical to reduce debt.
Board of Directors of the company at its meeting held on May 28, 2013 has accorded its approval to consolidate its pharmaceutical segment under two separate verticals, Jubilant Life Sciences said in a filing to BSE.
Under the plan, the pharma business will include active pharmaceuticals ingredients, solid dosage form, radio pharmaceuticals, allergic extracts, sterile injectable and ointment, cream and liquid businesses.
The second vertical will be the drug discovery business.
Jubilant Life Sciences further said it has also constituted a committee to "explore, identify and implement the options and opportunities of raising money by listing the pharma business for its growth and reduction of overall consolidated debt of the company".
The company had posted consolidated net loss at Rs 30.97 crore for the fourth quarter ended March 31, 2013.
Earlier during this month Jubilant Life Sciences had said its board has approved to constitute a committee to explore options and opportunities to raise debt for the company up to an amount not exceeding USD 250 million (over Rs 1,350 crore) for prepayment of the existing debt and other general corporate purposes without increasing the overall net debt levels of the company.
Shares of Jubilant Life Sciences were today trading at Rs 161.40 per scrip on BSE, down 0.71 per cent from its previous close.