Aurobindo Pharma: former promoter takes 20% stake in A1 Labs subsidiary
AUROPHARMA · price
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Dr. Rajendra Gadikota, former promoter of A1 Biochem Group, subscribed to 89,94,500 equity shares and 2,41,05,500 Compulsorily Convertible Debentures in A1 Labs for INR 9.18 Cr and INR 24.62 Cr respectively. He now holds 20% stake on a fully diluted basis. Apitoria Pharma (wholly owned subsidiary of Aurobindo) holds the other 80%. A1 Labs ceases to be wholly owned but remains a subsidiary and step-down subsidiary. Apitoria has an option to acquire the 20% stake in future. Deal was done at arm's length based on fair valuation.
Follow-up to earlier acquisition; no major financial impact. Aurobindo retains effective control through Apitoria's 80% stake, with a buyback option available later.