Innova Captab Wins NCLT Nod To Acquire Sharon Bio-Medicine

Integrated pharmaceutical company Innova Captab Ltd. received the National Company Law Tribunal’s (NCLT) approval to acquire the bankrupt Sharon Bio-Medicine Ltd.

The Mumbai bench of the NCLT pronounced its order on 17 May, approving Innova’s resolution plan for the company, Sharon said in a stock exchange announcement.

Innova’s resolution plan offers 195.40 crore rupees ($24 million) to the stakeholders against the admitted claims of about 920.51 crore rupees, according to the NCLT order.

The valuation reports estimated Sharon’s average fair value at 279.92 crore rupees and average liquidation value at 184.23 crore rupees, the order showed.

Sharon makes active pharmaceutical ingredients (APIs) as well as offers a range of pharmaceutical products and services, including animal toxicology and manufacturing of finished dosages, according to its website.

The NCLT order noted that as an integral part of the resolution plan, Sharon will be de-listed from the stock exchange.

The plan also provides for expansion of the company’s API plant and new product development, as well as enhancement of existing production capacity of its formulation plant and fund infusion for expansion, Sharon said.

Established in 2006, Innova has presence across the pharmaceuticals value chain, including research and development, manufacturing, drug distribution as well as marketing and exports.

Sharon was admitted into insolvency resolution on 28 February 2018 following a petition filed by its financial creditor Culross Opportunities SP & Peter Beck and Partners.

Pulkit Gupta was appointed as the company’s resolution professional and following the bidding process, Innova emerged as the successful resolution applicant and Sharon’s committee of creditors approved its resolution plan in November 2022.

(Note: $1 = 82.7876 Indian rupees)

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