Cipla, a leading drugmaker, said Friday the board of Medispray Laboratories, a wholly owned subsidiary of the company, approved the acquisition of two manufacturing undertakings for Rs 1.01 billion. "A significant portion of the capacities of the two undertakings are dedicated for the manufacture of Cipla's products. Acquisition of the aforesaid undertakings is expected to yield operational synergies," the company said.

The first manufacturing facility located at Goa is owned by Okasa and the second manufacturing facility located at Satara (Maharashtra) is owned by Okasa Pharma. Medispray board approved consideration of Rs 290 million for Goa unit and Rs 719.30 million for Satara unit.  

The considerations for these transactions were supported on the basis of valuation reports from Price Waterhouse & Co. LLP and fairness opinions provided by Kotak Mahindra Capital Company.

Shares of the company gained Rs 5.5, or 1%, to settle at Rs 557.30. The total volume of shares traded was 430,833 at the BSE (Friday).