Andhra Pradesh-based Laurels good on Thursday (August 21) announced a restructuring plan that involves the dissolution of its subsidiary Laurus Synthesis. Under the plan, a unit of the subsidiary will be merged with Sriam Labs, and the remaining business will be integrated into the parent entity.
Laurus Synthesis is engaged in the business of contract development & manufacturing organisation and contract research & manufacturing services, and had an annual turnover of ₹236.9 crore in FY25.
The company said the restructuring would improve operational integration, financial strength and business flexibility across the group. It is also expected to simplify the corporate structure, enhance resource utilisation and support future growth initiatives.
As part of the transaction, there will be a share swap for the demerger, but no cash consideration for merging Laurus Synthesis into Laurus Labs. The company added that the scheme will not alter its existing shareholding pattern.
The company’s board of directors approved the plan, and the appointed date for the scheme is April 1, 2026, pending clearance from the National Company Law Tribunal (NCLT).
In July, the company posted a strong earnings performance that beat Street expectations as well as of the same quarter last year. Revenue for the quarter increased by 31.2% on a year-on-year basis to ₹1,570 crore, which is higher than the CNBC-TV18 poll estimate of ₹1,514.2 crore. Earnings before interest, tax, depreciation and amortisation for the quarter stood at ₹383 crore, which is higher than the CNBC-TV18 poll estimate of ₹323 crore, and more than double when compared to the year-ago quarter figure of ₹171 crore.
Also read: Laurus Labs shares are at a 52-week high but analysts still see 33% downside
Shares of Laurus Labs closed 1.5% higher at ₹889.5 on the BSE. The stock has gained 44% in the year so far.
