The equity value of the transaction is worth Rs 850 crore, considering an approximate debt of Rs 800 crore, subject to other adjustments in accordance with the terms of the business transfer agreement (BTA).

The company stated that the infusion of capital from slump sale will empower the firm to optimize its capital structure, reduce debt and fortify its financial foundation, thus positioning it for sustained growth. This would also improve the company's credit profile, it added.

Meanwhile, the company's board has given a green light for the investment of Rs 80 crore to Synthimed Labs in terms of the BTA and shareholders agreement.

A sum of Rs 32 crore towards equity shares and 0.001% compulsorily convertible preference shares (CCPS) of Synthimed Labs, which will constitute 8.42% of the expanded share capital of Synthimed Labs.

A sum of Rs 48 crore in non-convertible debt of Synthimed Labs as per the terms of the issue of the NCDs, it added.

Further, the board of directors has also approved the grant of unsecured loan of upto Rs 600 crore, including the loans already advanced, to Ind Swift.

Lastly, the firm's board has approved in-principally, the proposal of amalgamation of Ind-Swift, a group company with Ind-Swift Laboratories.

Ind-Swift Laboratories is engaged in manufacturing pharmaceutical products especially active pharmaceutical ingredients (APIs) & advanced intermediates.

The company's consolidated net profit declined 13.3% to Rs 17.24 crore despite of 10.8% rise in revenue to Rs 310.34 crore in Q1 FY24 over Q1 FY23.

The counter hit a 52-week high of Rs 123.40 in today intraday session on the BSE.