Laurus Labs board approves investment of ₹40 crore in arm Laurus Bio – CNBC TV18

Drugmaker Laurus Labs Ltd on Friday (December 6) said its subsidiary, Laurus Bio, has signed a definitive agreement for an equity investment of ₹120 crore from Eight Roads Ventures and F-Prime Capital. Laurus Labs

also agreed to co-invest an additional ₹40 crore at the same valuation.

The promoters of Laurus Bio have also been issued share warrants, exercisable up to two years from the date of issue at the same valuation. Laurus Labs or Eight Roads Ventures have the right to invest up to an additional amount of ₹35 crore before December 2025 at the same valuation.

Upon completion of the transaction, the company, Eight Roads Ventures and the promoters of Laurus Bio will hold 75%, 14% and 9% stake respectively on a fully diluted basis. The company will utilise the equity infusion for further expansion of its fermentation-based manufacturing capabilities in order to cater to growing customer demand.

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Laurus Labs reported a 46.5% year-on-year (YoY) decline in net profit at ₹19.8 crore for the second quarter that ended September 30, 2024. In the corresponding quarter of the previous fiscal, Laurus Labs posted a net profit of ₹37 crore, the company said in a regulatory filing.

The CNBC-TV18 poll had predicted a profit of ₹46 crore for the quarter under review. The company’s revenue from operations was flat at ₹1,224 crore. The CNBC-TV18 poll had predicted revenue of ₹1,287 crore for the quarter under review.

At the operating level, EBITDA dipped 5.2% to ₹180 crore in the second quarter of this fiscal over ₹189 crore in the corresponding period in the previous fiscal. The CNBC-TV18 poll had predicted an EBITDA of ₹213 crore for the quarter under review.

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Shares of Laurus Labs Ltd ended at ₹590.55, up by ₹2.40, or 0.41% on the BSE.