Shilpa Medicare Ltd received approval from the NCLT Bengaluru Bench to merge its wholly owned subsidiary, Shilpa Therapeutics Private Ltd, into the parent company. According to reports from CNBC TV18, the tribunal's order dated February 27, 2026 has been issued, marking a significant corporate restructuring milestone for the pharmaceutical company. The NCLT order approves the amalgamation scheme under Sections 230-232 of the Companies Act, 2013, with the tribunal setting the appointed date as April 1, 2025, replacing the originally proposed date of April 1, 2023. The merger involves comprehensive regulatory compliance requirements, including settlement of outstanding MSME and statutory dues totaling several crores.
During the proceedings, regulatory authorities, including the Regional Director (RD), raised several points that the petitioner companies addressed through undertakings. As reported by CNBC TV18, the shareholding confirmation was established that Shilpa Medicare Limited holds the entire Equity & Preference Shares in the transferor company, making it a wholly-owned subsidiary. The companies undertook to safeguard employee interests by ensuring absorption of all staff, workmen, and employees of the transferor company on terms not less favourable than existing conditions, without any break in service. Undertakings were provided to settle all undisputed statutory dues, including those owed to MSMEs - the transferor company owing ₹25.60 lakhs and transferee company owing ₹53.13 lakhs. The transferee company also committed to complying with Section 232(3)(i) for the clubbing of Authorised Share Capital and paying any differential fees within six months of the order.
The amalgamation will become effective once certified copies of the NCLT order are obtained and filed with the Registrar of Companies, along with completion of other specified conditions in the scheme. As reported by CNBC TV18, Shilpa Medicare will update stock exchanges and its website after receiving the certified order, completing the formalities of the merger process. Following previous merger approvals, Shilpa Medicare's authorized share capital has been increased to ₹56.00 crores. The transferor company, Shilpa Therapeutics Private Limited, has an authorized share capital of ₹3.00 crores comprising equity share capital of ₹2.00 crores and preference share capital of ₹1.00 crore, with issued, subscribed and paid-up capital standing at ₹1.84 crores. The NCLT has ordered SML to deliver a certified copy of the order to the Registrar of Companies, Karnataka, within 30 days for registration.
Shares of Shilpa Medicare Ltd ended at ₹328.00, gaining ₹12.15 or 3.85% on the BSE on Thursday, March 5. According to CNBC TV18, this positive market reaction reflects investor confidence in the corporate restructuring and the company's strategic initiatives. The company's shares are listed on both NSE and BSE, with historical stock returns showing +2.57% for 1 day, -1.11% for 5 days, +3.42% for 1 month, -61.54% for 6 months, +4.04% for 1 year, and +68.53% for 5 years.
Last week, Shilpa Medicare announced that its material subsidiary, Shilpa Biologicals Pvt. Ltd., entered into a licensing agreement with SteinCares to commercialize a biosimilar across Latin America. As reported by CNBC TV18, the agreement grants SteinCares exclusive rights to register, commercialise and distribute the biosimilar across Latin American markets, with Shilpa Biologicals completing product development and manufacturing from its facility in Dharwad, Karnataka. The partnership combines Shilpa's biologics development and manufacturing capabilities with SteinCares' regional commercial platform, which includes regulatory, market access and distribution expertise across more than 30 countries in Latin America and the Caribbean.
The partnership represents Shilpa Biologicals' entry into the Latin American market and marks the first product under this strategic collaboration. According to CNBC TV18, the arrangement combines Shilpa's biologics development and manufacturing capabilities with SteinCares' regional commercial platform. Mitchell Waserstein, CEO of SteinCares, expressed enthusiasm about the collaboration: "We are excited to partner with Shilpa Biologicals to bring this biosimilar to Latin America. This agreement reinforces our leadership in biosimilars and our role as a strategic partner for global biopharmaceutical companies seeking to enter Latin America's complex healthcare markets." Dr. Sridevi Khambhampaty, CEO of Shilpa Biologicals, highlighted the strategic importance: "SteinCares is a trusted partner in Latin America with proven expertise in the registration and commercialization of specialty therapies. Through this licensing agreement, we are entering Latin America and aim to broaden patient access to safe treatments across the region."
