Infinity Holding Group will acquire a 43.7% stake in bulk drugs and formulations maker Jagsonpal Pharmaceuticals for Rs 269 crore.

On Monday, Jagsonpal Pharmaceuticals said in a regulatory filing that the company and Infinity Holdings have entered into a share purchase agreement (SPA) for acquisition and sale of 11.46 million equity shares, constituting 43.73 per cent of the voting share capital of the company. The Purchaser Group (Infinity Holdings, Infinity Holdings Sidecar and Infinity Consumer Holdings) would also be making an open offer to acquire equity shares of the company representing 26 per cent.

The transaction as well as the open offer is expected to be completed by June this year. Jagsonpal Pharmaceuticals' products are primarily focused on women's health and orthopedics. For the nine months ended December 2021, the company posted 64 per cent year-on-year (YoY) growth in net profit at Rs 20 crore, on back of 20 per cent YoY jumped in revenue from operations at Rs 174 crore.

"Going forward, while the Convergent Funds will work extensively with company management in building the business, we will support the business with our legacy knowledge, pharmaceutical expertise, and industry connects," said Rajpal Singh Kochhar, Chairman and Managing Director, Jagsonpal Pharmaceuticals, in the disclosure.

Harsha Raghavan, Managing Partner at Convergent, noted in the statement that women’s health is a critical issue for the country and the pharmaceuticals company plays an important role in making its products accessible to the masses.

The company has a robust distribution network and large field force of medical representatives, he added.