RPG Life Sciences announced that its Board of Directors approved the acquisition of the Active Pharmaceutical Ingredients (API) and intermediates business of Raghava Life Sciences Private Limited on September 2, 2026. The transaction is valued at up to ₹135 crore and will be executed by its wholly owned subsidiary, RPG Active Pharma Limited (RPGAP), through a slump sale.

The deal marks the second strategic move by RPGAP to build a scaled, integrated API organization, following the recent purchase of Actis Generics. The acquisition is structured as a going-concern transfer and requires regulatory approvals from local authorities before closing. Management expects the transaction to complete tentatively within 30 days or as mutually agreed, subject to satisfaction of closing conditions.

Asset Profile and Capacity

Raghava Life Sciences operates a manufacturing facility near Hyderabad spread across approximately 9 acres. The plant holds an installed capacity of around 300 KL and is approved under both WHO-GMP and EU-GMP standards. The asset includes a dedicated R&D setup and has seen significant investment in capacity expansion in recent years.

The acquired portfolio comprises 29 API molecules, including 22 commercialized APIs and 7 development-stage assets. These products span therapeutic segments including diabetes, cardiovascular, and central nervous system (CNS) disorders. The business holds multiple international regulatory credentials, including CEP, EU Written Confirmation, and KDMF approvals. The target business reported revenues of about ₹19 crore in FY26 (unaudited).

Strategic Rationale

RPGAP aims to unlock value through synergies across this acquisition, the Actis Generics business, and its wider network. Expected levers include backward integration, improved capacity utilization, cost synergies, and selected product transfers. Management stated that stronger business development and wider market access are poised to improve cost competitiveness and enhance operating leverage over time.

The acquisition will be funded in line with the recent equity raise announced by RPGAP. It is not a related-party transaction, and the promoter group has no interest in the entity being acquired.

Leadership Commentary

Ashok Nair, Managing Director of RPG Life Sciences Limited, described the deal as an important addition that brings together a high-quality manufacturing asset and broad portfolio. He emphasized that the real opportunity lies in unlocking potential through stronger commercialization and integration across the organization.

Lohith Ponguleti, Managing Director of Raghava Life Sciences Private Limited, stated that the partnership positions the business to accelerate expansion across domestic and international markets.

Quillon Partners acted as legal advisors, o3 Capital as financial advisors, and Deloitte as the Financial Due Diligence partner for RPG Active Pharma Limited.

RPG Life Sciences Limited will host an analyst and institutional investor meeting on September 2, 2026, at 10:00 am IST. The event is scheduled as part of the Ashwamedh – Elara India Dialogue 2026 in Mumbai.

Meeting details

The company disclosed the engagement pursuant to Regulation 30 read with Para A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015. The meeting will be held in a physical format in Mumbai, featuring both group and one-on-one sessions.

Rajesh Shirambekar, Head-Legal & Company Secretary, confirmed the details. The date remains subject to change due to exigencies on the part of the company or host. Any presentation made during the meet will align with the presentation available on the company’s website and stock exchange portals.