Aurobindo Pharma buys 51 percent stake in GLS Pharma
Advertisement
Hyderabad: Aurobindo Pharma has recently announced that the Board of Directors of the Company has approved the acquisition of 51% equity shares in GLS Pharma Limited, operating in oncology business and having manufacturing facility in Hyderabad for a total consideration of Rs 28,05,00,000.
According to Aurobindo, this acquisition is undertaken to expand the foothold of the Company in Oncology business in the domestic market and inorganic addition to capacity and revenues in oncology business.
"The binding agreements have been entered between GLS Pharma Limited, its existing Shareholders and the company on June 17, 2022. The completion of the share transfer is estimated before July 31 , 2022," Aurobindo said in a BSE filing.
The transaction is proposed to be undertaken at a pre-money equity valuation of Rs 45.65 crores. The acquisition is proposed through a combination of primary issuance and secondary purchase in the following manner:
1) Share subscription of 2,04,819 equity shares for INR 9,35,00,000 to be issued by GLS
2) Share purchase of 4,09,339 equity shares for INR 18,70,00,000 from the existing shareholders of GLS
After completion of both the above transactions, Aurobindo will hold 51% equity shares of GLS.
Further, Aurobindo has a call option to acquire the balance 49% equity shares of GLS, after a period of 3 years but before 5 years from the current acquisition, at fair value determined at such point in time.
GLS Pharma Limited is a pharmaceutical company engaged in the business of Oncology products which include orals and injectables used in chemotherapy for solid malignancies, chemotherapy for hematological malignancies and chemo supportive products. GLS has an India centric approach with pan India availability in more than 400 institutions.
It had a total sales of INR 25.8 crores during FY 2021-22, INR 26.4 crores during FY 2020-21 and INR 23.6 crores during FY 2019-20.
Our comments section is governed by our Comments Policy . By posting comments at Medical Dialogues you automatically agree with our Comments Policy , Terms And Conditions and Privacy Policy .
Disclaimer: This website is primarily for healthcare professionals. The content here does not replace medical advice and should not be used as medical, diagnostic, endorsement, treatment, or prescription advice. Medical science evolves rapidly, and we strive to keep our information current. If you find any discrepancies, please contact us at corrections@medicaldialogues.in. Read our Correction Policy here. Nothing here should be used as a substitute for medical advice, diagnosis, or treatment. We do not endorse any healthcare advice that contradicts a physician's guidance. Use of this site is subject to our Terms of Use, Privacy Policy, and Advertisement Policy. For more details, read our Full Disclaimer here.
NOTE: Join us in combating medical misinformation. If you encounter a questionable health, medical, or medical education claim, email us at factcheck@medicaldialogues.in for evaluation.