Lupin rose 0.41% to Rs 750.55 after the company announced completion of Kyowa divestment to Unison.
Lupin announced during trading hours today, 17 December 2019, that its subsidiary, Nanomi B.V. has completed the divestment of the entire 99.82% stake in Kyowa Pharmaceutical Industry Co. (Kyowa) to Unison Capital Partners IV, LPS and Unison Capital Partners IV (F). L.P. (collectively referred to as 'Unison'), pursuant to the satisfactory completion of all customary closing conditions.The divestiture which valued Kyowa at an enterprise value of 57,361 million yen was announced on 11 November 2019 and approved by Lupin's shareholders.
The transaction generates post tax net cash inflow of approximately Rs 2157.60 crore and significantly strengthens Lupin's consolidated balance sheet. With this, the drug major's net debt reduced from Rs 4361.80 crore (as on 30 September 2019) to Rs 1075.30 crore. Net debt to equity ratio now stands at 0.08 as compared to 0.32.
The Nifty 50 index was up 79.85 points or 0.66% at 12,133.80.
In the past one month, the stock rose 0.56% to its current market price of Rs 750.55, underperforming the Nifty Pharma index which rose 2.54% in the same period.
On the technical front, the stock's RSI (relative strength index) stood at 45.079. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
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The stock was trading above its 50-day moving average (DMA) placed at Rs 747.28 and 100-day moving average (DMA) placed at Rs 747.31. Both these levels would serve as support levels in the upcoming trading sessions.
Lupin's consolidated net profit soared 37.1% to Rs 364.53 crore on 10.4% rise in net sales to Rs 4,296.90 crore in Q2 September 2019 over Q2 September 2018.
Lupin is engaged in producing, developing and marketing a range of branded and generic formulations, biotechnology products and active pharmaceutical ingredients (APIs) across the world.
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