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.
