Shares of Strides Pharma were trading in the red and 1% below on 4 December despite the company announcing the closure of its transaction with Syngene International.

In its filing, the company said that its associate company, Stelis Biopharma, has executed the final agreements to transfer its Unit 3 multi-modal facility, located in Bengaluru, to Syngene for a gross adjusted consideration of Rs 617 crore from Rs 702 crore.

The price reduction was on account of, amongst other things, Stelis retaining 10 single-use 2KL (20,000 litres) reactors not currently installed in the facility.

The company said, “With its current installed capacity of 8,000 litres, the near term expanded capacity at 28,000 litres will make Stelis a significant player in the space.”

On 1 December, Stelis received Rs 395 crore, and the remaining amount will be received on completion of certain post-closing actions and final adjustments. The capital received, along with the cash and cash equivalents, have been deployed to repay the debts of Stelis’ lenders worth Rs 420 crore.

In November, Strides Pharma Global Pte Limited, Singapore, the company’s step-down wholly-owned subsidiary, received approval for Potassium Sulphate, Sodium Sulphate, and Magnesium Sulphate Oral Solution 17.5g/ 3.13g/ 1.6g per 6 ounces from the USFDA (United States Food & Drug Administration).

At 1:56 pm, the shares of Strides Pharma were trading 1.15% below at Rs 496.55 on NSE.