Nectar Lifesciences Ltd. has signed a definitive business transfer agreement (BTA) for the sale of its core business division to Ceph Lifesciences for INR 1,270 crore on a slump sale basis.

Its core business division comprises the manufacture, distribution, and marketing of Active Pharmaceutical Ingredients (APIs) and formulations.

Additionally, the company has entered into an asset purchase agreement (APA) for the sale of its menthol business to Ceph Lifesciences for INR 20 crore, Nectar said in a regulatory filing.

According to Nectar Lifesciences, the transaction forms a part of its long-term strategy to streamline its operations, strengthen its financial position and unlock value for shareholders.

The company plans to use the proceeds from the sale to repay existing debt, invest in new and emerging business areas, reward shareholders (subject to applicable approvals), and fund future corporate and growth initiatives.

Sanjiv Goyal, Promoter and Chairman of Nectar Lifesciences, commented: “This transaction marks a significant milestone in Nectar Lifesciences’ evolution. By divesting mature segments of our business, we are laying the foundation for a focused and agile organization geared towards innovation and long-term value creation.”

The transaction is expected to be completed on or before September 20, 2025, subject to customary approvals, and there would be no change in the company's existing shareholding.

Approved by the company’s board on July 7, 2025, the transaction is also subject to shareholder approval, which will be sought at the company’s Extraordinary General Meeting (EGM) to be held on August 4, 2025.