Cohance Lifesciences Limited , formerly known as Suven Pharmaceuticals Limited, has received a compounding order from the Reserve Bank of India (RBI) related to past transactions involving ZCL Chemicals Limited (ZCL). The order, which typically addresses regulatory compliance matters, has been settled with the central bank.

Key Details of the Compounding Order

• The order, dated July 18, 2025, pertains to alleged violations of the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019.
• These violations were connected to certain foreign investments in ZCL Chemicals Limited in 2021, before its merger with Cohance Lifesciences.
• The company is required to pay a compounding fee of ₹8.30 crore (₹8,29,88,900) to the RBI within 15 days of the order.

Background and Corporate Structure Changes

• ZCL Chemicals Limited merged with erstwhile Cohance Lifesciences Limited, effective February 1, 2024.
• Subsequently, erstwhile Cohance Lifesciences merged with Suven Pharmaceuticals Limited, effective May 1, 2025.
• The merged entity was renamed Cohance Lifesciences Limited on May 7, 2025.

Financial Impact and Compliance

• The financial statements of erstwhile Cohance for the year ended March 31, 2025, had already made provisions for the compounding fee.
• Cohance Lifesciences stated that there is no additional impact on its financial, operational, or other activities beyond the compounding amount.
• The company received post-facto approval from the Department of Pharmaceuticals, Government of India, in 2022 for the transactions in question.

Regulatory Disclosure

The company has made this disclosure in compliance with Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015. The disclosure aims to keep shareholders and the market informed about significant regulatory developments affecting the company.

Cohance Lifesciences' proactive approach in addressing and settling this regulatory matter demonstrates its commitment to compliance and transparency in its operations. The resolution of this issue allows the company to move forward without the overhang of unresolved regulatory concerns.

Cohance Lifesciences has made a strategic move to streamline its operations by selling its non-core CR Bio unit to Chromo Labs for Rs 16 crore. This divestment is part of the company's efforts to sharpen its focus on its core Contract Development and Manufacturing Organization (CDMO) business.

Strategic Divestment

The sale of the CR Bio unit represents a significant step for Cohance Lifesciences as it realigns its business strategy. By divesting this non-core asset, the company aims to:

• Concentrate resources on its primary CDMO operations
• Potentially improve operational efficiency
• Unlock value from a non-essential business unit

Transaction Details

Impact on Business Focus

This move underscores Cohance Lifesciences' commitment to strengthening its position in the CDMO sector. By shedding non-core assets, the company can potentially:

• Allocate more resources to its CDMO operations
• Enhance its competitive edge in the pharmaceutical manufacturing space
• Streamline its business model for better operational focus

The sale of the CR Bio unit to Chromo Labs marks a notable development in Cohance Lifesciences' corporate strategy, signaling its intent to optimize its business portfolio and concentrate on its core competencies in the CDMO market.