Jubilant Life Sciences’ Demerger May Complete In FY21: ICICI Securities
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Jubilant Life Sciences Ltd. has recently received the National Company Law Tribunal approval for demerger of pharma and life science ingredients (LSI) businesses into two separate companies.
We believe separate listing of both companies should happen in the next few weeks, before FY21 ends.
The company had announced this demerger in October 2019 with the rationale of two separate and focused entities for pharma and LSI segment and to unlock shareholder value.
There could be some value unlocking as combined entity trades at a discount to sector peers; however, we do not expect material valuation re-rating considering modest growth outlook and debt on the books.
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