On the National stock exchange, shares of Laurus Labs today gained over 7 percent to Rs 314 after the pharma conglomerate announced that it has acquired a majority stake in Richcore Life sciences. Laurus Labs has signed a definitive agreement to acquire 72.55 percent of Richcore's shares from Eight Roads Ventures and VenturEast for a value of Rs. 246.7 crore, as per exchange filing.

Richcore is being valued at Rs 340 crore and the cost of acquisition will be Rs 246.7 crore and will be funded through internal accruals. The current promoters led by Subramani Ramchandrappa will continue to be on the executive board and run the operations.

After the successful closure of the transaction, Richcore will be renamed to Laurus Bio Pvt. Ltd. "This acquisition marks Laurus Labs' entry into the broader biologics and biotechnology segments, providing the company access to its high growth areas, globally and in India. With this acquisition, Laurus adds a fourth revenue stream to its three existing divisions - API, Formulations and Synthesis."  After the announcement Motilal Oswal maintained its "buy" rating on the stock and raised its target price to Rs 410.
 

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