RPG Life Sciences (RPGLIFE) Status Update summary

Board decisions and financial transactions

• Approved payment of INR 32.2 crore in transfer charges to MIDC under the ULC Act amnesty scheme and execution of a binding agreement to assign 15,015 sq m of API plant land for INR 144.9 crore plus GST.

• The financial impact of the MIDC payment is expected to be offset by the proceeds from the land assignment upon successful completion.

Strategic business context

• Focus remains on domestic formulations, with new emphasis on international formulations and API as growth engines.

• Modernization and consolidation of the API plant enabled freeing up and monetizing a portion of the land in Navi Mumbai.

• Proceeds from the land monetization will be used to support inorganic growth opportunities, especially in formulations and API.

Financial and accounting impact

• INR 32.2 crore will be booked as a one-time extraordinary expense in Q2 FY25.

• Income from the land assignment (INR 144.9 crore) is expected to be recognized in Q3 FY25, subject to MIDC approval.

• Net cash from the transaction is expected to be around INR 90 crore, adding to the current cash surplus of over INR 100 crore.