Aurobindo Pharma Promoters Raise Rs 2,000 Crore via Structured Debt
Hyderabad: In a major financial move, the promoter group of Aurobindo Pharma has raised about Rs 2,000 crore through a two-tranche structured debt facility to fund real estate acquisitions and asset purchases, including the Taj Banjara hotel in Hyderabad, through their realty arm Auro Realty.
The funds will support the group's ongoing expansion into the property and infrastructure segment, marking one of the largest promoter-level financings in recent months.
According to the Economic Times report, the ₹2,000 crore transaction has been structured in two series of non-convertible debentures (NCDs). The first series, worth ₹650 crore, carries a two-year tenor with a put and call option and an interest rate of 11.75%. The second series, amounting to ₹1,450 crore, has a four-year tenor with a likely 15.5% coupon. Together, these tranches form a carefully structured financing model balancing high yield and strong security coverage.
The loan is secured through a pledge of promoter entities, including Raidurgam Developers Pvt Ltd (RDL) and Auro Realty, along with other tangible assets collectively valued at more than ₹2,500 crore. Additional personal and corporate guarantees have been provided by the promoter group to reinforce the security package.
Raidurgam Developers, which is developing Galaxy Tower, a premium commercial project in Hyderabad’s Raidurgam area that houses several technology companies, forms a key part of the pledged collateral. The overall asset coverage is estimated at 2.5 times the loan value, increasing to nearly 4 times when guarantees are included.
Lenders are expected to gain exit visibility through refinancing, project-generated cash flows, and asset monetisation options, including Loan Against Property (LAP) and Lease Rental Discounting (LRD). The structured arrangement is designed to ensure both liquidity and repayment flexibility backed by a strong asset base.
Aurobindo Pharma, with annual revenues of around ₹31,000 crore, remains net cash positive, reflecting financial strength despite this large promoter-level borrowing. The company, headquartered in Hyderabad, did not issue an official comment on the financing.
The Economic Times reports that the deal aligns with a growing trend of promoters accessing alternative credit funds and private debt markets for high-yield financing. Similar routes have previously been used by promoters of firms like Kalyan Jewellers India through financial institutions such as Motilal Oswal and 360 One.
Also Read: Aurobindo Pharma reports minor fire incident at Andhra Pradesh unit
