Aurobindo Pharma Subsidiary Allots Shares, Diluting Wholly-Owned Status

Aurobindo Pharma Ltd announced that its step-down subsidiary, A1 Biochem Labs (India) Private Limited (A1 Labs), has allotted equity shares and compulsory convertible debentures to Dr. Rajendra Gadikota, the former promoter of A1 Biochem group. This transaction results in Dr. Gadikota holding a 20% stake in A1 Labs on a fully diluted basis, thereby ceasing its status as a wholly-owned subsidiary. The allotment involved 89,94,500 equity shares and 2,41,05,500 Compulsory Convertible Debentures, for which A1 Labs received ₹9.18 Cr and ₹24.62 Cr respectively, totaling ₹33.80 Cr. A1 Labs continues to be a subsidiary of Apitoria Pharma Private Limited (a wholly owned subsidiary of Aurobindo Pharma) and a step-down subsidiary of Aurobindo Pharma. The transaction is considered a related party transaction but has been conducted at arm's length, based on a fair valuation report and shareholder approval.