RPG Life Sciences shares gained 1.29% to ₹2,606 following the announcement of its subsidiary's acquisition of Raghava Life Sciences' API business. The company has completed the strategic reorganization of its active pharmaceutical ingredients (API) business by transferring it to a wholly owned subsidiary, RPG Active Pharma (RPGAP). The move aims to sharpen focus on the high-value niche product segment and accelerate growth through specialized management and capital infusion. The company has partnered with InvAscent, a pharma-centric private equity firm, to drive value creation in the new subsidiary. Under the agreement, RPGLS retains a 60% stake in RPGAP, while InvAscent holds 40% following a primary issuance valued at approximately ₹243.33 crore. The restructuring involves the creation of RPGAP as a dedicated vehicle for the API business, separating it from the formulations segment within the parent entity.
RPG Life Sciences has successfully completed its comprehensive API investment strategy, securing a ₹243.33 crore investment from healthcare-focused private equity firm InvAscent for a 40% stake in RPG Active Pharma Ltd (RPGAP). The company has also approved the acquisition of the active pharmaceutical ingredients and intermediates business of Raghava Life Sciences for up to ₹135 crore, subject to regulatory approvals and closing conditions. According to latest reports, the business generated approximately ₹19 crore revenue in FY26 and includes manufacturing and R&D facilities along with 29 API molecules. The API business, previously operating from a facility in Navi Mumbai, reported external third-party sales of approximately ₹95.1 crore in FY26, in addition to captive sales to RPGLS for its formulations business. The transaction was approved by RPG Life Sciences' Board of Directors on September 2, 2026, and will be executed through a slump sale structure, with completion subject to regulatory approvals within 30 days.
The acquisition provides access to a 300 KL API manufacturing facility near Hyderabad, spread across approximately 9 acres, which holds an installed capacity of around 300 KL and is approved under both WHO-GMP and EU-GMP standards. The facility 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 that 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. Following the recent acquisition of Actis Generics, this transaction broadens RPGAP's manufacturing base, product portfolio, regulatory capabilities and customer access across geographies. The consolidated organization is intended to strengthen RPGAP's participation in the growing API market through greater scale, synergies, deeper integration and focused commercial execution.
As reported by Moneycontrol, RPG Life Sciences managing director Ashok Nair stated that this acquisition marks an important addition to the RPG Active Pharma consolidated organisation. The transaction advances the group's strategy of building an integrated and scaled API platform and creates opportunities to improve commercialisation and operating leverage. The deal comes weeks after RPG carved out its API business into RPG Active Pharma, secured the ₹243.33 crore investment from InvAscent, and agreed to acquire Visakhapatnam-based API manufacturer Actis Generics. With the addition of Raghava, RPG expects to broaden its manufacturing footprint, deepen its product pipeline and strengthen regulatory capabilities through backward integration, product transfers, and improved capacity utilisation. The acquisition is structured as a going-concern transfer and requires regulatory approvals from local authorities before closing, with management expecting the transaction to complete tentatively within 30 days or as mutually agreed.
The comprehensive API investment strategy positions RPG Life Sciences for significant growth in the pharmaceutical manufacturing sector. The ₹243.33 crore InvAscent investment for a 40% stake in RPGAP combined with the ₹135 crore Raghava acquisition creates substantial capacity expansion and revenue potential. The combined acquisition cost for Actis Generics and Raghava Life Sciences totals approximately ₹215 crore (₹80 crore + ₹135 crore), which represents roughly 88% of the ₹243.33 crore equity investment brought in by InvAscent. This alignment suggests that the new partner's capital is being deployed almost entirely toward immediate capacity expansion and portfolio enhancement rather than general corporate purposes or debt reduction. RPGAP positions itself as a zero-debt company with sufficient liquidity for organic and inorganic growth, with the manufacturing capacity set to increase fourfold through these transactions, supporting a revenue potential of about ₹200 crore at full utilization levels for the Raghava facility alone. The company reported strong Q1 FY27 results with 17% rise in consolidated net profit to ₹30.76 crore on a 15.85% increase in revenue to ₹195.69 crore compared with Q1 FY26.
