Archive · 16 Sep 2025
SEBI Halts Par Drugs Sale Over Valuation Concerns
Imagine a company, Par Drugs, wanted to sell part of its business.
But the financial watchdog, SEBI, stepped in.
They stopped the sale because they thought the price was unfair.
SEBI believes the value wasn't accurately calculated, potentially hurting regular investors.
The company signed an agreement to sell for Rs 95 crore but SEBI is concerned.
SEBI has requested an independent valuation and fairness opinion from a merchant banker.
Until the investigation concludes, the sale is on hold to make sure everyone gets a fair deal.
SEBI has blocked the sale of Par Drugs and Chemicals' core business.
The sale was to a promoter-related entity, Phal-Jig Fine Chemicals.
SEBI cited irregularities in valuation, shareholder communication, and the voting process.
An independent valuer and merchant banker will re-evaluate the business.
PDCL's market capitalization has decreased by almost 70% since the announcement of the sale.
- Who
- SEBI and Par Drugs and Chemicals
- What
- Blocked the proposed sale of Par Drugs' core business.
- When
- February 14, 2025 (BTA Signed), Interim order issued Monday
- Where
- Vadodara-based
- Why
- Due to valuation concerns and potential harm to public shareholders.
- Company
- Par Drugs and Chemicals Ltd (PDCL)
- Regulatory Body
- Securities and Exchange Board of India (SEBI)
- Action
- Blocked the sale of core business
- Buyer
- Phal-Jig Fine Chemicals Pvt Ltd (PJFCPL)
- Sale Price
- Rs 95 crore
- Reason
- Prima facie irregularities in valuation