Aurobindo Pharma Transfers Domestic Branded Business to Auropharm for Rs 143.21 Crore
New Delhi: Aurobindo Pharma Limited has approved the transfer of its domestic branded generic pharmaceutical formulations business to its wholly owned subsidiary Auropharm Limited for a lump sum consideration of Rs 143.21 crore, as part of its strategy to streamline and accelerate domestic growth.
The decision was taken by the company’s Board of Directors at a meeting held on April 6, 2026, which commenced at 7:00 a.m. and concluded at 8:10 a.m. The transfer will be executed through a Business Transfer Agreement (BTA) signed on the same day.
The business being transferred contributed ₹1,753.40 million to turnover, accounting for 0.55% of the company’s consolidated revenue, and ₹1,481.40 million to net worth, representing 0.45% of consolidated net worth in the last financial year.
The transaction is expected to be completed within 90 to 120 days from the date of the agreement, subject to fulfilment of customary conditions. Upon completion, the economic benefits of the business will be transferred to Auropharm Limited with effect from April 1, 2026.
Auropharm Limited, previously known as Auro Pharma Limited, is a wholly owned subsidiary engaged in the trading of branded generic formulations and pharmaceutical products in India. The transfer includes all associated assets and liabilities such as movable assets, employees, contracts, intellectual property, licenses, approvals, receivables, inventory, and payables on a going concern basis.
The transaction qualifies as a related party transaction since it is between the holding company and its wholly owned subsidiary. However, as per applicable provisions of the Companies Act, 2013 and SEBI Listing Regulations, such transactions are exempt from related party compliance requirements and will have no impact on a consolidated basis.
The company clarified that the transfer is being carried out outside a scheme of arrangement and is structured as a slump sale. It does not constitute the sale of the whole or substantially the whole undertaking under relevant provisions of the Companies Act.
For the financial year ended March 31, 2025, Aurobindo Pharma reported standalone revenue of ₹1,09,333 million, while the domestic branded formulations business contributed ₹1,753.40 million. Auropharm Limited reported nil turnover during the same period.
The rationale behind the transaction is to consolidate the company’s domestic pharmaceutical operations under Auropharm Limited, which currently manages the non-oncology formulations business acquired earlier. The move is expected to enhance operational efficiency and enable a more focused approach to expanding the domestic business.
The company also confirmed that there will be no change in its shareholding pattern following the transaction.
