Nectar Lifesciences Limited — Important, 07-07-2025: Disclosure of material issue

Nectar Lifesciences Ltd. has announced a board meeting to approve the sale of its active pharmaceutical ingredients and formulations business to Ceph Lifesciences Private Limited for INR 1,270 Cr on a slump sale basis. Separately, it will sell its menthol business assets to the same buyer for INR 20 Cr.

The pharma business accounts for over 98% of the company’s revenue and around 65% of its net worth, while the menthol segment contributes less than 1% revenue and under 3% net worth.

This strategic move will significantly alter Nectar's business profile by exiting its core pharma manufacturing and marketing operations. The company plans to use the sale proceeds for debt repayment, new investments, shareholder rewards, and general corporate purposes.

Shareholder approval for the pharma business sale will be sought at an extraordinary general meeting. The transactions are expected to complete by mid-September 2025.

Investors should monitor how the company reinvests the proceeds and the transition plan post-divestment, as this repositions Nectar from a pharma manufacturer to a company with a different business focus or asset base.