Bliss GVS Pharma shares surged nearly 15% in early trade on May 26, extending their two-day rally to more than 20%, after specialty chemicals maker Anupam Rasayan announced plans to acquire a controlling stake in the company and launch an open offer for public shareholders.
The stock was trading at ₹364.9 on the NSE at the time of publishing this article, hitting a fresh 52-week high during the session.
The sharp rally comes after Anupam Rasayan signed a definitive agreement to acquire a 43.3% stake in Bliss GVS Pharma for around ₹1,369.5 crore at ₹299 per share.
The acquisition also triggered a mandatory open offer for an additional 26% stake from public shareholders at the same price of ₹299 per share, in line with SEBI takeover regulations.
Reports suggest that Anupam Rasayan may eventually acquire up to 74.2% stake in Bliss GVS Pharma through the combination of the share purchase agreement, open offer and additional call option arrangements.
Under the deal structure, Anupam Rasayan will acquire 4.58 crore equity shares representing 43.3% stake in Bliss GVS Pharma. The company also holds an option to acquire an additional 4.9% stake from existing shareholders.
The Street is viewing the transaction positively as the acquisition would help Anupam Rasayan strengthen its presence across the pharmaceutical value chain. Analysts believe the deal could create an integrated life sciences and specialty pharma platform by combining Anupam Rasayan’s specialty chemicals capabilities with Bliss GVS Pharma’s formulations business.
Bliss GVS Pharma is engaged in manufacturing and exporting pharmaceutical formulations including suppositories, tablets, capsules and injectables, with a strong presence in global markets, particularly in Africa and emerging economies.
The open offer and change in control expectations have significantly boosted investor sentiment around the stock over the last two trading sessions.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice.