Stock under ₹60 jumps 11% after company to acquire 51% stake in SSM Formulations

SYNOPSIS: Eiko Lifesciences approved a strategic 51 percent acquisition of SSM Formulations and announced a fundraise via warrants and equity shares, strengthening its pharmaceuticals presence and supporting future expansion and integration plans.

During Thursday’s trading session, shares of a company involved in the manufacturing and sales of specialty and fine chemicals surged nearly 11 percent on the BSE, after the company’s Board approved acquiring a 51 percent stake in a company operating in the business of Pharmaceuticals.

At 12:45 p.m., shares of Eiko Lifesciences Limited were trading in the green at Rs. 55.39 on BSE, up by around 4 percent, compared to its previous closing price of Rs. 53.18, with a market cap of Rs. 76 crores. The stock has delivered negative returns of around 10 percent in one year, but has gained by over 8 percent in the last six months.

What’s the News:

According to the latest disclosures filed with the BSE, the Board of Eiko Lifesciences Limited has approved a strategic acquisition and a fund-raising plan at its meeting held on Thursday, 11th December 2025.

The Board has approved the acquisition of 51% equity shares in SSM Formulations Private Limited for a total consideration of Rs. 18 crores. SSM Formulations, which operates in the pharmaceutical formulations business, will consequently become a subsidiary of Eiko Lifesciences Limited. The target company’s turnover for the past three financial years stood at Rs. 27.65 crores in FY25, Rs. 41.4 crores in FY24, and Rs. 50.82 crores in FY23.

Eiko Lifesciences stated that this acquisition represents a strategic forward integration into pharmaceutical formulations, aimed at broadening its product portfolio and enhancing value realisation across the pharma supply chain.

The move is expected to strengthen the company’s market presence in specialty chemicals, pharmaceutical intermediates, and APIs, while providing access to new niche molecules and an expanded customer base. The company anticipates operational synergies, economies of scale, and improved competitiveness as the acquired business aligns closely with its core operations.

Further, the Board approved a fund-raising of nearly Rs. 21.86 crores through preferential issuances. This includes 33,00,000 convertible warrants priced at Rs. 55 each (comprising a face value of Rs. 10 and a premium of Rs. 45), aggregating to Rs. 18.15 crores, and 6,75,000 equity shares also issued at Rs. 55 each (face value Rs. 10 + premium Rs. 45), aggregating to Rs. 3.71 crores. These securities will be allotted to promoters, promoter group entities and select public investors.

Financials & More:

Eiko Lifesciences reported a significant growth in revenue from operations, experiencing a year-on-year increase of around 43 percent, from Rs. 8.16 crores in Q2 FY25 to Rs. 11.67 crores in Q2 FY26.

Likewise, the company’s net profit increased during the same period from Rs. 0.28 crores to Rs. 1.3 crores, representing an impressive rise of more than 364 percent YoY.

Eiko LifeSciences Limited, formerly known as Narendra Investments (Delhi) Limited, is primarily engaged in the business of manufacturing, processing, formulating, producing, buying, selling, and exporting speciality and fine chemicals.

The company offers an extensive range of organic and inorganic specialty chemicals that cater to key sectors such as pharmaceuticals, agrochemicals, aroma chemicals, and electronic chemicals.

Written by Shivani Singh

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