AUROPHARMANSEAurobindo Pharma Limited· PharmaceuticalsHighPositive
Announced Thu, 1 Jan · 18:02 IST

Aurobindo Pharma Limited has informed the Exchange about acquisition of the branded non-oncology prescription formulations business of Khandelwal Laboratories Private Limited as a going concern, including without limitation inventory, intellectual property, employees, contracts etc. on a slump sale basis is being acquired by Auro Pharma Limited, a wholly owned subsidiary of the Company.

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AI summary

Aurobindo Pharma's wholly owned subsidiary, Auro Pharma Limited, has acquired the branded non-oncology prescription formulations business of Khandelwal Laboratories Private Limited on a slump sale (going concern) basis. The business includes 23 brands across 67 SKUs, 9 pipeline products, around 470 field staff and over 1,600 stockists, focused on anti-infective and pain management therapies. It generated turnover of INR 1,135.3 million and EBITDA of INR 289.9 million in FY2024-25, and has been operational since 1973-74. The deal was signed and closed on January 1, 2026, for a cash consideration of INR 3,250 million, with no regulatory approvals required and no related party involvement.

Likely market impact

The acquisition strengthens Aurobindo Pharma's domestic branded formulations portfolio in pain management and anti-infectives, adding scale to its India business. While the INR 325 crore deal size is modest relative to Aurobindo's overall scale, it is margin-accretive (EBITDA margin ~25.5%) and should be viewed as a strategic, value-additive expansion, likely to be received positively by the market.