RPG Life Sciences Subsidiary Raghava Life Sciences' API Biz
RPG Life Sciences Ltd's fully owned subsidiary, RPG Active Pharma Ltd, has signed a business transfer deal to purchase the active pharmaceutical ingredients (API) and intermediates division of Raghava Life Sciences for a total of up to Rs 135 crore.
The firm revealed the transaction information in an investor presentation dated September 2, 2026. The restructuring entails establishing RPGAP as a focused entity for the API business, distinguishing it from the formulations division within the parent organization.
RPG Life Sciences has teamed up with InvAscent, a private equity firm focused on pharmaceuticals, to enhance value generation in the new subsidiary.
As per the agreement, RPGLS maintains a 60 percent ownership in RPGAP, whereas InvAscent possesses 40 percent after a primary issuance worth around Rs.243.33 crore.
InvAscent has more than 20 years of expertise in developing companies in formulations, APIs, healthcare services, and medical technology.
The company oversees assets under management (AUM) surpassing $850 million through four different funds. The collaboration is anticipated to enable growth funding, industry connections, and synergies in product choices and mergers and acquisitions.
Also Read: Airbus Awards A320 Fuselage Contract to Mahindra Aerostructures
The API division, which was based in a facility in Navi Mumbai, recorded external third-party sales of around Rs.95.1 crore in FY26, along with internal sales to RPGLS for its formulations segment. The company targets niche products with high value and low volume that are shielded from price commoditization.
The total acquisition cost for Actis Generics and Raghava Life Sciences is about Rs.215 crore (Rs.80 crore plus Rs.135 crore). This figure accounts for approximately 88 percent of the Rs.243.33 crore equity investment secured by InvAscent. This alignment indicates that the new partner’s investment is primarily aimed at immediate capacity growth and portfolio improvement instead of overall corporate objectives or debt reduction.
Also Read: Jio Haptik Appoints Adarsh. as Enterprise Business Head
RPGAP establishes itself as a debt-free company with ample liquidity for both organic and inorganic expansion. The subsidiary aims to utilize economies of scale by implementing backward integration and enhancing process efficiency. The production capacity is expected to grow four times due to these agreements, enabling a revenue potential of roughly Rs.200 crore at maximum utilization for the Raghava facility by itself.
RPGAP seeks to create value by leveraging synergies among this acquisition, the Actis Generics division, and its broader network. Anticipated drivers comprise backward integration, enhanced capacity utilization, cost synergies, and specific product transfers. Management indicated that improved business development and broader market access are expected to boost cost competitiveness and strengthen operating leverage in the long run.
Also Read: Borosil Expands its Consumer Brand Play With Exclusive Stores
The funding for the acquisition will align with the recent equity raise disclosed by RPGAP. It is not a transaction involving related parties, and the promoter group has no stake in the entity that is being acquired.