Zota Health Care Limited Acquires Equity Shares in Wholly Owned Subsidiary
Zota Health Care Limited has completed the acquisition of 2,35,512 equity shares in its wholly owned subsidiary, Davaindia Health Mart Limited. The transaction was executed on a preferential basis for consideration other than cash.The acquisition serves to adjust and discharge an outstanding unsecured loan, along with accumulated interest, previously granted by Zota Health Care Limited to the subsidiary. This strategic move is expected to reduce the Group's total outstanding debt on a consolidated basis while enhancing the overall net worth of the Group.
Transaction Details and Valuation
The acquisition was finalized on July 17, 2026. The shares were acquired at a cost of Rs. 5,075 per equity share, which includes a premium of Rs. 5,065 per share. The total aggregate consideration for the acquisition amounts to Rs. 1,19,52,23,400.
The transaction was structured as a conversion of the outstanding unsecured loan and interest into equity shares rather than a direct cash payment. Following this acquisition, Davaindia Health Mart Limited continues to be a wholly owned subsidiary of Zota Health Care Limited.
Target Entity Profile
Davaindia Health Mart Limited operates in the pharmaceutical industry, specifically running a retail generic pharmacy chain under a Company Owned Company Operated (COCO) model. As of June 30, 2026, the entity operated 1,855 stores and offered over 2,000 SKUs, including medicines, Ayurvedic products, cosmetics, nutraceuticals, and OTC products.
The company has demonstrated significant growth over the last three financial years as detailed in the table below:
| Financial Year | Turnover (Rs.) |
|---|---|
| FY 2025-26 | 267.71 crores |
| FY 2024-25 | 109.93 crores |
| FY 2023-24 | 44.77 crores |
Corporate Structure and Governance
The transaction was conducted on an arm's length basis. It has been confirmed that the acquisition does not fall within related party transactions, and neither the promoters nor any group companies hold an interest in the entity being acquired. According to the audited financial statements for FY 2025-26, Davaindia Health Mart Limited had a total paid-up share capital of Rs. 2.71 crores.
ZOTA Stock Price Movement
Zota Health Care LImited shares today slipped by 0.88% to settle at ₹1349.7. The stock traded with a volume of 33,361 shares during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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