Chandigarh, July 8, 2025 — Nectar Lifesciences Limited (NSE: NECLIFE, BSE: 532649), a prominent player in the Indian pharmaceutical industry, has announced the signing of a definitive Business Transfer Agreement (BTA) to divest its core business division—including the manufacturing, distribution, and marketing of active pharmaceutical ingredients (APIs) and formulations—to Ceph Lifesciences Private Limited. The deal is valued at ?1,270 crore and will be executed on a slump sale basis.

In a parallel development, Nectar Lifesciences has also entered into an Asset Purchase Agreement (APA) to sell its menthol business assets to Ceph Lifesciences for ?20 crore. These moves mark a strategic restructuring initiative aimed at realigning the company’s business focus and unlocking shareholder value.

The transaction is a part of Nectar Lifesciences’ long-term plan to streamline operations and bolster its financial strength. Proceeds from the sale are expected to be used for repaying debt, investing in new and emerging business segments, rewarding shareholders (subject to approvals), and funding future growth initiatives.

Chairman and Promoter of Nectar Lifesciences, Mr. Sanjiv Goyal, termed the deal a transformational milestone for the company. “By divesting the mature segments of our business, we are creating a more agile and focused organization built for innovation and sustainable value creation,” he stated. He also expressed gratitude to stakeholders for their continued trust and support.

Ceph Lifesciences Private Limited, an unrelated third-party buyer, will acquire both the API and formulations business and the menthol business assets. The transaction, which was approved by Nectar Lifesciences’ Board on July 7, 2025, is expected to be completed by or before September 20, 2025, subject to customary regulatory and shareholder approvals.

The company clarified that there will be no change in its existing shareholding pattern following the transaction. An Extraordinary General Meeting (EGM) is scheduled for August 4, 2025, where shareholders will vote on the proposed sale.

This strategic divestment reflects Nectar Lifesciences’ renewed commitment to building a future-ready enterprise while delivering long-term value to its stakeholders.