Additionally, the company will make an open offer to the public equity shareholders of Unichem to acquire upto 26% of the fully diluted outstanding equity share capital at the same price of Rs 440 per share.

The acquisition is subject to approval of the Competition Commission of India and such other approvals as may be required.

The objective of this acquisition is that the business and product range of Ipca and that of Unichem complements each others business and product range.

The pharma company said that the cash consideration will be funded from the company's retained earnings.

Premchand Godha, promoter and executive chairman of lpca Laboratories said, “Unichem has developed an excellent and proven quality track record with a differentiated capability which is highly complementary to lpca's strengths. This acquisition is in line with our stated strategy to enhance our portfolio in our chosen growth markets. We both are well positioned to successfully integrate our product offerings and grow our businesses."

Dr. Prakash A Mody, promoter and chairman and managing director of Unichem Laboratories said, "We believe that lpca is an ideal partner to take business of Unichem through its next phase of growth. For Unichem, employees and customers have been core to its business and I strongly believe, they will benefit from lpca's expertise in providing competitive' and integrated services globally.”

Unichem Laboratories is an international, integrated, specialty pharmaceutical company. It manufactures and markets a large basket of pharmaceutical formulations as branded generics as well as generics in several markets across the world.

Ipca is a pharmaceutical company with a thrust on exports which now account for 44% of the company's income. Ipca is vertically integrated and produces finished dosage forms and active pharmaceutical ingredients.

Ipca Lab's consolidated net profit tumbled 45.25% to Rs 107.84 crore in Q3 FY23 compared with Rs 196.96 crore in Q3 FY22. Revenue from operations rose 8.08% YoY to Rs 1,546 crore in the corresponding quarter last year.

Shares of Unichem Laboratories rose 1.45% to Rs 392.40 on the BSE. Shares of Ipca Laboratories hit 52-week low of Rs 743 in intraday today.