RPG Life Sciences subsidiary RPG Active Pharma approves merger of Actis Generics
The firm is a pharmaceutical company whose operations are diversified in formulation and active pharmaceutical ingredients (APIs). In 2026, the company moved the entire API operation to RPG Active Pharma with the aim of creating a platform exclusively for API manufacturing and business expansion. The RPGAP firm went ahead and acquired the Actis Generics as well as the API and intermediates of the Raghava Life Sciences.
The shares of RPG Life Sciences are currently trading at Rs. 2,976.50, down by 2.43%. The company has a market capitalization of Rs. 4,922.84 crore. The stock’s 52 week high is Rs. 3,127.80 and its 52 week low is Rs. 1,733.00. In the past 6 months the stock has delivered a return of 60.23%.
What's The News
RPG Active Pharma's Board approved the Scheme of Amalgamation of Actis Generics Private Limited with RPG Active Pharma Limited at its meeting held on September 25, 2026. RPG Life Sciences subsequently informed the stock exchanges about the approval.
Since Actis Generics is already a wholly-owned subsidiary of RPG Active Pharma, the suggested consolidation would be an internal reorganization and not a new acquisition. Given that RPGAP already owns Actis Generics, there will be no issue of fresh shares as consideration and the shares held in Actis Generics by RPGAP would be extinguished. There will also be no change in the shareholding pattern of RPG Life Sciences.
Key Details
In accordance with the proposed plan, RPG Life Sciences Ltd is the holding company; RPG Active Pharma Ltd is the transferee company, whereas Actis Generics Pvt Ltd is the transferor company. Actis Generics is the wholly-owned subsidiary of RPG Active Pharma, which means that the transaction involves the consolidation of the current corporate structure only.
The Board of Directors passed a resolution for the Scheme of Amalgamation on September 25, 2026. The amalgamation proposed to take place under Sections 230 to 232 of the Companies Act, 2013 that deal with the issue of schemes of arrangement or amalgamation between companies.
As per the proposed plan of transaction, no fresh issuance of any share would be done nor would any cash payment be made towards the amalgamation. This is because Actis Generics is the wholly-owned subsidiary of RPG Active Pharma.
Financial Details of the Entities
RPG Active Pharma Ltd. recorded its net worth as ₹34.75 crore as of March 31, 2026. The company was incorporated on December 24, 2025, and thus, had no revenue from operations in FY26. RPG Active Pharma Ltd. is the transferee company in the proposed scheme of amalgamation.
On the other hand, Actis Generics Pvt Ltd. has a net worth of ₹34.60 crore as of March 31, 2026, in addition to its revenue from operations of ₹45.96 crore for FY26. Actis Generics Pvt Ltd. is the transferor company in the proposed scheme of amalgamation and is wholly owned by RPG Active Pharma Ltd.
Thus, the proposed merger will involve the merger of the current business and finances of Actis Generics into the RPG Active Pharma Ltd. In view of the internal nature of the transaction, there will be no issue of any share or cash consideration in the proposed amalgamation.
Financial Performance
Looking at the quarterly results of RPG Life Sciences Limited, the company’s consolidated sales stood at Rs. 196 crore in Q1 FY27, compared with Rs. 169 crore in Q1 FY26, registering a growth of around 15.98% YoY. On a quarterly basis, sales increased from Rs. 177 crore in Q4 FY26 to Rs. 196 crore in Q1 FY27, registering a growth of around 10.73% QoQ.
In Q1 FY27, the company’s consolidated operating profit stood at Rs. 43 crore, compared with Rs. 35 crore in Q1 FY26 and Rs. 33 crore in Q4 FY26. The operating profit margin stood at 22% in Q1 FY27, compared with 21% in Q1 FY26 and 19% in Q4 FY26.
The company’s consolidated net profit stood at Rs. 31 crore in Q1 FY27, compared with Rs. 26 crore in Q1 FY26, registering a growth of around 19.23% YoY. On a sequential basis, net profit increased from Rs. 30 crore in Q4 FY26 to Rs. 31 crore, representing a growth of around 3.33% QoQ.
The company’s EPS stood at Rs. 18.60 in Q1 FY27, compared with Rs. 15.90 in Q1 FY26 and Rs. 18.08 in Q4 FY26. This reflects an increase of around 16.98% YoY and 2.88% QoQ.
What Happens Next
The amalgamation is not yet effective merely because the Board has approved the scheme. It remains subject to the required regulatory and shareholder approvals, including approval from the jurisdictional NCLT bench and other applicable authorities.
Once the scheme becomes effective, Actis Generics will cease to exist as a separate legal entity and its assets, liabilities and business will be consolidated into RPG Active Pharma, subject to the terms of the approved scheme.
Investor Perspective
The proposed merger is the next step in RPG Life Sciences' ongoing effort to build a single, focused API platform under RPG Active Pharma. The company has already transferred its API business to RPGAP and subsequently added Actis Generics and Raghava Life Sciences to expand its manufacturing capacity and product portfolio.
For investors, the key points to monitor will be the completion of regulatory approvals, integration of Actis Generics, utilisation of the expanded manufacturing capacity and the contribution of the acquired API businesses to future revenue and profitability.
Company Overview
The company RPG Life Sciences is engaged in the manufacture of formulations as well as active pharmaceutical ingredients (APIs). In 2026, RPG shifted its API business to RPG Active Pharma in order to create a specialized platform that would specialize in APIs manufacturing, product development, and growth. After this move, RPGAP made acquisitions of Actis Generics and API and intermediates business of Raghava Life Sciences in order to make a scale API business.
RPG Active Pharma is a wholly owned subsidiary of RPG Life Sciences and is created as a specialized API and advanced intermediates business for both domestic and international markets. In view of acquisitions by RPGAP, manufacturing capacity of this platform has increased from 110 KL to 505 KL and product portfolio from 14 to 45 products.