RPG Life Sciences subsidiary acquires Raghava's API business for up to ₹135 crore

RPG Life Sciences Limited announced that its wholly owned subsidiary, RPG Active Pharma Limited (RPGAP), has entered into a Business Transfer Agreement to acquire the Active Pharmaceutical Ingredients (API) and Intermediates business undertaking of Raghava Life Sciences Private Limited on a going-concern basis through a slump sale. The transaction is valued at up to ₹135 crore, subject to customary adjustments and closing conditions. This acquisition is the second for RPGAP, following Actis Generics, and aims to bolster its organic growth and create an integrated, scaled API-focused organization. The acquired business includes a modern API manufacturing facility near Hyderabad with approximately 300 KL of installed capacity, a dedicated R&D setup, and is WHO-GMP and EU-GMP approved. It also brings a portfolio of 22 commercialized APIs and 7 under development across therapeutic segments such as diabetes, cardiovascular, and CNS. RPGAP expects to unlock value through synergies including backward integration, improved capacity utilization, and cost synergies. The acquisition will be funded in line with RPGAP's recent equity raise. Mr. Ashok Nair, Managing Director, RPG Life Sciences Limited, stated that the acquisition strengthens RPGAP's scale and capabilities, advancing the strategy of building an integrated and competitive scaled API business. Mr. Lohith Ponguleti, Managing Director, Raghava Life Sciences Private Limited, expressed confidence that RPG is well-positioned to build on their foundation and accelerate expansion.

Quillan Partners acted as legal advisors, o3 Capital as financial advisors, and Deloitte as the Financial Due Diligence partner for RPG Active Pharma Limited.