“Multiple Expressions of Interest (EoIs) received for the strategic disinvestment of Indian Medicines Pharmaceutical Corporation Limited (IMPCL). The transaction will now move to the second stage,” Pandey posted on X (formerly Twitter).
The transaction will now proceed to the second stage, which involves due diligence and the issuance of request for proposals (RFPs) for financial bids.
DIPAM had previously invited expressions of interest from potential buyers for the disinvestment of IMPCL on August 31. The deadline for submitting preliminary bids was October 30.
Currently, the Indian government holds a 98.11% stake in IMPCL, which operates under the administrative control of the Ministry of Ayush. The remaining 1.89% stake is owned by Kumaon Mandal Vikas Nigam Ltd (KMVNL), a subsidiary of the Uttarakhand government. KMVNL also intends to sell its entire holding in IMPCL as part of the strategic sale process.
IMPCL is a prominent manufacturer of 656 classical ayurvedic, 332 unani, and 71 proprietary ayurvedic medicines, catering to a wide range of diseases. The company supplies ayurveda and unani medicines to all states under the National Ayush Mission (NAM) as well as 6,000 Jan Aushadhi Kendras centers. The pricing of IMPCL products is determined by the central government. The disinvestment of IMPCL is expected to bring about a liberalized pricing policy, along with an established distribution network and efficient payment collection mechanism. This, in turn, is anticipated to enhance the company’s competitiveness in the market, leading to increased sales and profitability, as stated by the DIPAM while inviting expressions of interest. As of March 31, 2022, IMPCL had a paid-up share capital of Rs 51.98 crore. The company’s manufacturing facilities are situated on a 35.81-acre campus in Almora, Uttarakhand. Since its inception, IMPCL has been a profitable organization, with its profit before tax (PBT) amounting to Rs 42.77 lakh in FY20, which rose to Rs 45.41 crore in FY22.