Morepen Laboratories Sells Subsidiary Shares, Acquires Groom Town Private Limited for Rs. 153.01 Crore

Morepen Laboratories Ltd. has approved the sale of 1.53 Crore equity shares of its subsidiary, Dr. Morepen Limited (DML), to related party entities for approximately Rs. 30.65 Crore. This sale has resulted in the company's shareholding in DML reducing to 49.91%, causing DML to cease being a subsidiary. Simultaneously, DML has entered into a Share Purchase cum Subscription Agreement with Groom Town Private Limited (GTPL) for the acquisition of 100% equity shares of GTPL for approximately Rs. 153.01 Crore. This acquisition will be discharged by DML through the fresh issue and allotment of 7,63,99,200 equity shares to GTPL shareholders. The equity valuation of DML and GTPL and the relative fair exchange ratio for this transaction has been duly arrived at through a Valuation Report of an Independent IBBI’s Registered Valuer.