Government attracts multiple preliminary bids for sale of IMPCL

The government has received several expressions of interest in the strategic disinvestment of Indian Medicines Pharmaceutical Corporation Limited (IMPCL).

Tuhin Kanta Pandey, the Secretary of the Department of Investment and Public Asset Management (DIPAM), shared the update, stating that "Multiple Expressions of Interest (EoIs) have been received for the strategic disinvestment of Indian Medicines Pharmaceutical Corporation Limited (IMPCL). The transaction will now proceed to the second stage."

The second stage of the process will involve due diligence and the subsequent issuance of Request for Proposals (RFPs) for financial bids.

On August 31, DIPAM invited EoIs from potential bidders for the disinvestment of IMPCL, and the deadline for submitting preliminary bids was October 30.

The government of India currently holds a 98.11 per cent stake in IMPCL, which operates under the administrative control of the Ministry of Ayush. The remaining 1.89 per cent stake is owned by Kumaon Mandal Vikas Nigam Ltd (KMVNL), an entity of the Uttarakhand government, which also intends to divest its entire holding in IMPCL as part of the strategic sale process.

IMPCL is involved in the manufacturing of 656 classical Ayurvedic, 332 Unani, and 71 proprietary Ayurvedic medicines that cater to a diverse range of diseases. It supplies ayurveda and unani medicines to all states under the National Ayush Mission (NAM) and to 6,000 Jan Aushadhi Kendras.

The pricing for IMPCL products is determined by the central government. DIPAM noted, "Liberalised pricing policy post disinvestment combined with an already established distribution network and payment collection mechanism may enable the company to compete with other market players more efficiently, leading to increased sales and profitability."

As of March 31, 2022, IMPCL had a paid-up share capital of Rs 51.98 crore. The total campus area of IMPCL spans 35.81 acres in Almora, Uttarakhand.

IMPCL has been a profitable organization since its inception. Its profit before tax (PBT) increased from Rs 42.77 lakh in FY20 to Rs 45.41 crore in FY22.