Solara Active slumps after listing

There is a new listing on the bourses today; not through an IPO but through scheme of arrangement. Solara Active Pharma Sciences got listed on the BSE at Rs.288 but is now 5% down at Rs.273.60.

A part of the Strides Shasun group, this company is a merger of two demerged units of Strides Shasun and SeQuent Scientific, where they both hold 60% and 40% respectively.

Solara business now comprises of commodity API of both the entities. It also contains the demerged API business of another company in which Strides divested stake I favor of Solara for Rs.131 crore.

As per the scheme of arrangement, the shareholders of Strides got one equity share of Solara for every six shares held while shareholders of SeQuent will get one share of Solara for every 25 shares held.