Sequent Scientific Surges After Announcement of Merger
Sequential Scientific Share Price: On September 27, shares of Sequent Scientific experienced a remarkable increase of more than 12% in response to the company’s announcement regarding a major merger valued at Rs 8,000 crore with Viyash Life Sciences. This news sparked investor excitement, leading to the substantial rise in share prices. Sequent Scientific, which specializes in animal health, indicated that the merger arrangement would entail shareholders of Viyash Life Sciences receiving 56 shares of Sequent for every 100 shares they currently hold. Following the merger, Sequent will transition to operate as the sole publicly listed entity.
Strategic Goals of the Merger
The merger aims to establish a “differentiated, global end-to-end integrated platform with robust operational and research & development (R&D) capabilities,” positioning the combined entity as a market leader in the animal pharmaceutical sector. This strategy reflects a commitment to enhancing product offerings while streamlining operations in the highly competitive animal health industry.
Operational Strength of Viyash Life Sciences
Viyash Life Sciences brings significant capabilities to the partnership, operating 10 manufacturing facilities, including one located in New Jersey, USA. The company specializes in producing active pharmaceutical ingredients (APIs) and formulations geared towards the human health segment. During trading on September 27, by around 11:25 am, shares of Sequent Scientific were priced at Rs 214.2, showing a robust 12% gain on the National Stock Exchange (NSE).
Post-Merger Enhancements
In a joint statement, both companies outlined the expected benefits of the merger. Notably, they projected a fivefold increase in manufacturing capacity, a sixfold expansion of the R&D team, a ninefold increase in the number of USFDA-approved products, and an eightfold rise in the capacity for new product filings. These enhancements are anticipated to solidify their leadership position in the animal health market.
Current Financial Snapshot of Sequent Scientific
| Financial Metric | Value (FY2024) |
|---|---|
| Revenue | Rs 1,400 crore |
| Operating Profit | Rs 100 crore |
| Manufacturing Sites | 7 (India, Spain, Brazil, Türkiye) |
Leadership Insights
Rajaram Narayanan, CEO of Sequent, emphasized that this merger represents a critical step toward establishing their animal health business as a global frontrunner. He noted that the integration would significantly bolster their product development and R&D capabilities, ultimately benefiting consumers and advancing the sector.
Support from Viyash Leadership
Haribabu Bodepudi, the founder of Viyash, expressed enthusiasm over the merger, stating that it unites two innovative businesses dedicated to operational efficiency and customer service excellence. He highlighted that such collaborations are vital for excelling in today’s competitive landscape.
Projected Value Post-Merger
Upon the completion of the merger, the estimated valuation of the combined entity will be approximately Rs 8,192 crore. Sequent Scientific is already recognized as a qualified supplier for Viyash’s intermediates, which produce APIs on a large scale catering to the US market. The merged company will boast an impressive total of 16 manufacturing plants, 10 of which have secured USFDA approval, marking it as a significant player in the pharmaceutical industry.
