The company's board has also approved entering into a joint management control agreement with the promoters of Lyka Labs.

Shares of Lyka Labs were locked in 5% upper circuit at Rs 135.60 on the BSE.

As per BSE bulk deals data, Ipca Laboratories purchased 17,74,142 shares (representing 6.184% stake) of Lyka Labs at an average price of Rs 126.11 per share on Wednesday (23 November 2021).

Ipca Labs had acquired 10.50 lakh shares (representing 3.660% stake) of Lyka Labs via a bulk deal on the BSE on Monday (22 November 2021) at an average price of Rs 123 apiece.

In two sessions, Ipca Laboratories has acquired 28,24,142 equity share, representing 9.844% stake in Lyka Labs.

Lyka Labs said that IPCA Labs has received a letter on 24 November 2021 from its non-promoter public shareholders viz., Mayank J Shah, Shruti M Shah and Prasham M Shah offering to sell in aggregate up to 48 lakh shares, representing 16.73% stake in the company, through stock exchange mechanism under block deal or normal market.

Consequent to the aforementioned acquisition of shares of Lyka Labs, IPCA Labs has also made a public announcement to acquire 26% additional equity shares of Lyka Labs from its public shareholders.

The open offer to acquire 74,59,400 fully paid up equity shares, constituting 26% of the issued, subscribed, paid up and voting share capital of Lyka Labs has been made at a price of Rs 130.50 per equity share.

Lyka Labs is engaged in the manufacturing and marketing of injectables, lyophilized injectables and topical formulations. The major business of the company is from India and from rest of the world (ROW) markets. Products of the company are registered in several countries.

Ipca currently does not have any business directly from lyophilized injectables. Acquisition of this shareholding will enable the company to enter into lucrative lyophilized injectables business in India and ROW markets.

Lyka will also immensely benefit from marketing expertise of IPCA Labs in the branded generic formulations business of the ROW markets of Africa, Latin America, South East Asia and the Middle East where it is currently not doing business.

Ipca is a pharmaceutical company with a strong thrust on exports which now account for 52% of company's income. Ipca is vertically integrated and produces finished dosage forms and active pharmaceutical ingredients.

The company's consolidated net profit declined 6.31% to Rs 250.23 crore despite a 13.47% rise in sales to Rs 1544.43 crore in Q2 FY22 over Q2 FY21.

The scrip was currently trading 0.10% higher at Rs 2059.80 on the BSE.