Aurobindo Pharma buys 51 percent stake in GLS Pharma

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.

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