Aurobindo Pharma’s Latest Acquisitions: Tergene Biotech & Solar Power Investment

Aurobindo Pharma Limited has recently undertaken two key transactions: the acquisition of Tergene Biotech Limited and an investment in Swarnaaskshu Solar Power Private Limited under a power purchase agreement.

On February 6, 2025, the company’s Board of Directors approved both transactions in a meeting held from 4:30 p.m. to 6:45 p.m.

Acquisition of Tergene Biotech Limited

• Transaction Details: Aurobindo Pharma is acquiring 80% equity share capital of Tergene Biotech Limited from Auro Vaccines Private Limited (both step-down subsidiaries of Aurobindo Pharma).
• Post-Acquisition Status: Tergene Biotech will become a direct subsidiary of Aurobindo Pharma.
• Company Overview:
  • Established on March 7, 2008.
  • Engaged in pharmaceutical manufacturing and marketing.
  • Financials: As of March 31, 2024, Tergene had nil turnover and a negative net worth of ₹42.40 crores.
  • Past Turnover: ₹15 million in 2021-22, nil in 2022-23.
• Nature of Transaction:
  • Classified as a related party transaction, but related party provisions do not apply as it’s between a holding company and its wholly-owned subsidiary.
  • The transaction is conducted at arm’s length.
• Regulatory Approvals: No governmental or regulatory approvals are required.
• Completion Timeline: Expected by February 28, 2025.
• Acquisition Cost: ₹107.6 million.
• Objective: To bring Tergene Biotech under direct ownership of Aurobindo Pharma for strategic consolidation.

Investment in Swarnaaskshu Solar Power Private Limited

• Transaction Details: Aurobindo Pharma is entering into a power purchase agreement with Swarnaaskshu Solar Power under Telangana’s captive power policy.
• Equity Investment: Acquiring 26% of the paid-up equity share capital of Swarnaaskshu.
• Company Overview:
  • Swarnaaskshu is currently under incorporation in India.
  • Promoted by relatives of Mr. K. Nithyananda Reddy, Vice Chairman & Managing Director of Aurobindo Pharma.
  • Will establish a 30MW AC (40MW DC) solar power plant in Telangana.
• Regulatory Approvals: No approvals required for incorporation.
• Investment Amount: ₹10.40 crores.

These strategic acquisitions align with Aurobindo Pharma’s objectives to streamline its subsidiary structure and enhance renewable energy adoption for sustainable operations.