Shares of RPG Life Sciences Ltd soared 4% on 3 September after the company announced that its wholly owned subsidiary, RPG Active Pharma, will acquire the API and intermediates business of Raghava Life Sciences for up to Rs 135 crore. 

The acquisition will be completed through a slump sale on a going-concern basis and will be funded through a cash consideration of up to Rs 135 crore. The deal is subject to customary closing conditions and regulatory approvals. RPG Active Pharma is expected to complete the transaction within 30 days, according to reports.

The transaction will give RPG Active Pharma access to Raghava Life Sciences’ API manufacturing facility, which has around 300 kilolitres of installed capacity. The facility has WHO-GMP and EU-GMP approvals and also includes an R&D centre. 

The acquisition will add 29 API molecules to RPG’s portfolio, including 22 commercialised molecules and seven that are still under development.

Raghava’s API and intermediates business generated unaudited revenue of around Rs 19 crore in FY26. While the acquisition is relatively small compared with RPG Life Sciences’ overall operations, it gives the company additional manufacturing capacity and a broader product pipeline as it looks to scale its API business.

The deal also comes shortly after RPG Life Sciences began restructuring its API operations. In July, the company transferred its API business to RPG Active Pharma and brought private equity investor InvAscent into the new entity. 

InvAscent agreed to invest up to Rs 243.33 crore for a 40% stake, while RPG Life Sciences and InvAscent have outlined a broader investment plan of up to Rs 700 crore.

RPG Active Pharma had also acquired Actis Generics for Rs 80 crore as part of the company’s effort to build a larger API platform. The latest acquisition therefore marks another step in its inorganic expansion strategy.

At 12:25 pm, the shears of RPG Life Sciences were trading 4.67% higher at Rs 2,684.90 on NSE.

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