Eiko Lifesciences Acquires 51% Stake in WHO-GMP Accredited SSM Formulations
EIKO Lifesciences Limited has agreed to acquire a 51% equity stake in SSM Formulations Private Limited for ₹18 crores. SSM Formulations is a WHO-GMP accredited pharmaceutical formulations company based in Hinganghat, Wardha. The acquisition expands EIKO's capabilities from specialty chemicals and API supplier to a fully integrated pharmaceutical player. SSM brings high-barrier capabilities including Narcotics License, international registrations, and a strong manufacturing base. EIKO plans to raise funds through warrants and equity shares to support the acquisition and growth plans.
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EIKO Lifesciences Limited has announced a definitive agreement to acquire a 51% equity stake in SSM Formulations Private Limited, a WHO-GMP accredited pharmaceutical formulations company based in Hinganghat, Wardha. This strategic acquisition, valued at ₹18.00 crores, marks a significant milestone for EIKO Lifesciences, expanding its capabilities from a specialty chemicals and API supplier to a fully integrated pharmaceutical player with a global footprint in Finished Dosage Forms.
Strategic Acquisition Details
The board of directors approved the acquisition during their meeting held on December 11, 2025. The transaction will be executed in a phased manner aligned with EIKO Lifesciences' strategic fundraising through warrants.
| Parameter | Details |
|---|---|
| Target Company | SSM Formulations Private Limited |
| Acquisition Percentage | 51% equity shares |
| Total Consideration | ₹18.00 crores |
| Number of Shares | 71,71,950 shares |
| Facility Location | Hinganghat, Wardha (Nagpur-Hyderabad National Highway) |
| Facility Size | 16,400 sq. meters with 80,000 sq. ft. built-up area |
| Accreditation | WHO-GMP certified |
SSM Formulations Business Profile
SSM Formulations operates a WHO-GMP accredited facility with expansion-ready infrastructure including an additional 5,000 sq. ft. on the first floor. The company has demonstrated strong business performance with substantial turnover across recent financial years.
| Financial Year | Turnover (₹) |
|---|---|
| FY 2024-25 | 27,65,06,754 |
| FY 2023-24 | 41,41,02,661 |
| FY 2022-23 | 50,82,00,394 |
Strategic Capabilities and Market Position
SSM brings high-barrier capabilities including Narcotics License with Tramadol registrations in Ghana and Nigeria, along with registrations in Uzbekistan, Yemen, Nigeria, Ghana, and Cameroon. The company holds 199 Product Manufacturing Permissions, 157 Testing Permissions, and 74 COPPs with WHO-GMP certification.
| Capability | Details |
|---|---|
| Annual Capacity Potential | 300 crore tablets and 90 crore capsules |
| Current Utilization | 58% (Tablets), 33% (Capsules) |
| Target Utilization | 90% capacity |
| Therapeutic Areas | Anti-diabetic, cardiac, antibiotic, pain management, dermatology, anti-protozoal |
| Market Focus | Government Tenders (TNMSC, UPMSCL) and MNC contract manufacturing |
Fundraising Initiative
The board approved raising funds through the issuance of up to 33,00,000 warrants and 6,75,000 equity shares to support the acquisition and growth plans.
| Instrument | Warrants | Equity Shares |
|---|---|---|
| Quantity | 33,00,000 | 6,75,000 |
| Issue Price | ₹55.00 per warrant | ₹55.00 per share |
| Face Value | ₹10.00 | ₹10.00 |
| Premium | ₹45.00 | ₹45.00 |
| Total Amount | ₹18,15,00,000 | ₹3,71,25,000 |
| Allottees | 7 investors | 3 investors |
Management Commentary and Strategic Vision
Mr. Laxmikant Ramprasad Kabra, Director of EIKO Lifesciences Limited, emphasized the transformative nature of the acquisition, stating it represents a multiplier effect for the company. He highlighted SSM's extensive manufacturing base and foothold in over five international markets, with plans to transform SSM into a global export hub by combining EIKO Lifesciences' financial strength with SSM's operational excellence.
The acquisition enables vertical integration by manufacturing finished formulations using EIKO Lifesciences' own API supply chain to capture full value-chain margins. The strategic move aims to create a diversified revenue mix across APIs, specialty chemicals, government tenders, and branded exports while targeting rapid scale-up to 90% capacity utilization.
The board has scheduled an Extraordinary General Meeting for January 7, 2026, at 3:00 PM through video conferencing to seek necessary shareholder approvals for the transaction.
Historical Stock Returns for EIKO Lifesciences
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.48% | +1.48% | -0.26% | -2.83% | +4.59% | +51.96% |
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