Zydus Lifesciences shares rose 2% to a day high of Rs 1,150.80 on 15 October after its Sri Lanka venture signed a new plant deal.

In a filing to the exchanges at 11:30 am, the company said Zydus Sunshine Lifesciences, a venture it is forming with Sunshine Healthcare, signed a deal with Sri Lanka’s Board of Investment on 13 October.

The factory will come up in the Horana investment zone, on a plot of nearly four acres. Valued at over $20 million, the investment will roll out in phases.

Production is due to start in 2028. That timeline comes with a condition, since it depends on project schedules and regulatory approvals.

In the first phase, the plant will make oral solid medicines such as tablets and capsules for the local market in Sri Lanka.

Zydus said the plant supports its international presence, and that making medicines locally should help keep essential supplies available in Sri Lanka.

A joint venture is a business that two firms own together. Here, Zydus and Sunshine Healthcare, which belongs to Sunshine Holdings PLC, each hold 50%.

The two partners first told the market about the venture on 26 June. In that earlier disclosure, Zydus said it would put in up to $5 million in cash for its half, and that each side would name three of the six board directors.

Zydus also has two shareholder payouts on the books this year, a Re 1 per share dividend (ex-date 24 July) and a buyback (record date 29 May).

The stock opened at Rs 1,121.00. Over the past year, it has gained 17.06%, though it remains about 7% below its 52-week high of Rs 1,232.10, set on 29 September.

The company’s market value stands at Rs 1,14,114.44 crore, according to NSE data. At 14:40 pm, it’s trading up by 1.72% at Rs 1,144.10 on the NSE.

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