Advanced Enzyme will subscribe 4,92,630 equity shares of SciTech Specialties (SSPL) via preferential issue and purchase 27,778 from selling shareholders of SSPL, aggregating to 5,20,408 shares.

SSPL is a contract manufacturing company with niche technology specialising in effervescent granules and tablets. It is focused on animal health, pharma and nutraceutical. SSPL has two manufacturing facilities for nutraceuticals and pharmaceuticals. Regulatory approvals include approvals from from FSSAI, WHO cGMP and other accreditation from International agencies like Codex, FSMP, GSFS.

According to Advanced Enzyme, the acquisition synergises and fits in with its move to expand its B2C business. The company said Indicative time period for completion of the acquisition is 31 January 2021.

SciTech Specialities had reported net profit of Rs 1.62 crore, sales of Rs 19.04 crore and EBITDA of Rs 4 crore in H1 FY21.

Advanced Enzymes is a research driven company with global leadership in the manufacturing of enzymes. On a consolidated basis, the company's net profit jumped 20.2% to Rs 37.19 crore on an 8% rise in net sales to Rs 120.39 crore in Q2 September 2020 over Q2 September 2019.

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The Board of Advanced Enzyme Technologies in its meeting held on 26 December 2020 has approved the (a) investment of an amount not exceeding Rs. 31.62 crore by way of subscription to the issueof 492,630 equity shares of SciTech Specialties (SSPL) as may be offered on preferential issue / private placement basis by SSPL and purchase of 27,778 from selling shareholders of SSPL, aggregating to 520,408 equity shares i.e. 51% of equity share capital of SSPL, and (b)authorization for signing of Share Subscription and Shareholders' Agreement in this regard.

On completion of the aforesaid investment, SSPL will become subsidiary of Advanced Enzyme Technologies (Company).

SSPL is a technology-based contract manufacturing company specializing in effervescent granules and tablets. SSPL manufactures effervescentproducts with aqueous granulation technology for all product groups.SSPL has two manufacturing facilities for nutraceuticals and pharmaceuticals

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Advanced Enzyme Technologies has allotted 45,450 Equity Shares of face value of Rs. 2/- at an exercise price of Rs. 60/- per share pursuant to exercise of options by the eligible employees under the Company's Employees Stock Option Scheme, 2015.

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Net profit of Advanced Enzyme Technologies rose 20.16% to Rs 37.19 crore in the quarter ended September 2020 as against Rs 30.95 crore during the previous quarter ended September 2019. Sales rose 8.03% to Rs 120.39 crore in the quarter ended September 2020 as against Rs 111.44 crore during the previous quarter ended September 2019.

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