Aurobindo Pharma’s 80% Acquisition of Tergene Biotech

Aurobindo Pharma has decided to take full control of Tergene Biotech by acquiring the remaining shares from its subsidiary, Auro Vaccines. This step will simplify the company’s structure, enhance management efficiency and support its expansion in the biotech and pharmaceutical industry.

Overview of the Acquisition

Aurobindo Pharma has approved the acquisition of the remaining 80% equity stake in Tergene Biotech Limited from Auro Vaccines Private Limited. This transaction will transition Tergene from a step-down subsidiary to a direct subsidiary of Aurobindo Pharma. 

Financial and Regulatory Aspects

The acquisition is valued at ₹107.6 million and will be executed through cash payment. Since Aurobindo Pharma and its subsidiaries are related entities, the transaction falls under internal restructuring and does not require regulatory approvals. The acquisition will not impact Aurobindo Pharma’s overall finances since Tergene has had no revenue in recent years and a net loss of ₹42.40 crore.

Reason for Acquisition and Industry Background

Tergene Biotech operates in the pharmaceutical sector, specialising in the manufacturing and marketing of pharmaceutical products. Aurobindo Pharma’s objective behind this acquisition is to streamline its corporate structure by directly integrating Tergene into its operational framework. This move aligns with the company’s strategic initiatives to strengthen its presence in the biotech and vaccine segments.

Timeline and Additional Details

The acquisition is expected to be completed by February 28, 2025. Tergene, established in 2008 in India, previously recorded a revenue of ₹15 million in FY 2021-22 but reported no turnover in the past two financial years. Despite its financial challenges, Aurobindo Pharma sees value in fully owning and managing its subsidiary to optimize business operations and future growth.

Aurobindo Pharma Share Performance 

As of February 07, 2025, at 11:05 AM, the shares of Aurobindo Pharma Ltd are trading at ₹1,209.35 per share, up 1.47% from yesterday’s closing price. Over the last month, the stock has declined by 6.79%. The stock’s 52-week high is ₹1,592 and its low is ₹958.50.

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