Sequent Scientific shares surge over 4% as merger with Viyash group receives NCLT approval

At around 1:22 pm, the stock was trading at ₹255.07 per equity share, up by 3.03%, after the NCLT allowed the petition and approved the scheme of merger between the animal health firm and the Viyash group of companies.

The scrip has risen above 6% over the past five days and more than 28% over the month. It has gained nearly 50% in the last six months. On a year-to-date basis, it has risen a little over 38%.

In September 2024, the company’s board of directors approved the composite scheme of amalgamation for the merger of Viyash Life Sciences Pvt Ltd (Viyash) and its group companies (Viyash Group Entities), and Sequent Research Ltd (SRL), a wholly owned subsidiary of Sequent Scientific.

The merger is set to deliver the necessary scale and capability for accelerating organic growth in the animal health market, along with providing “financial resilience, stability, and management bandwidth to rejuvenate SeQuent’s inorganic growth engine.”

Commenting on the development, Rajaram Narayanan, Managing Director and CEO of SeQuent, said: “We are pleased to receive the approval from the Hon’ble NCLT, marking the start of a transformative journey for the combined entity. There are significant opportunities to provide relevant, differentiated, and quality care for animals. With this merger, the Company will be uniquely positioned to build a world-class business and deliver on the requirements of pet owners, farmers, and animal health professionals.”

The combined financial performance of the two firms aggregates to a revenue of ₹1,650 crore (or ₹16.5 billion) and an EBITDA of ₹3,200 crore (or ₹3.2 billion) for H1FY26. Its net Debt to EBITDA ratio stood at 0.7x, it added.

“This merger creates the platform to deliver world-class solutions for our customers. With our strengths in R&D, custom development capabilities, manufacturing capacities, and a streamlined supply chain, we would emerge as an innovative and reliable partner for our customers across the world,” said Dr. Haribabu Bodepudi, Founder and CEO, Viyash.

Viyash Lifesciences is an integrated end-to-end pharmaceutical company with a presence across niche formulations, APIs, and advanced intermediates.