11 Jan , 2022 By : monika singh
NEW DELHI: Shares of Aurobindo Pharma NSE -1.93 % shed 3.4 per cent in early trade on Tuesday after the drugmaker said it has initiated talks with private equity funds to sell a stake of around 30-35 per cent in its injectable business for Rs 4,500-5,250 crore ($600-700 million) as it plans value unlocking in its core businesses.
The counter fell to a low of Rs 713.40 as against the previous close of Rs 737.30 on the National Stock Exchange. The scrip was last trading 1.7 per cent lower.
According to ET’s reports, Aurobindo has hired Kotak Mahindra Capital to run the formal process to find a buyer.
In the July-September quarter of this fiscal year, the company had posted global injectable sales of $105 million, and the management reiterated a $650-700 million annual revenue target by fiscal 2024 (excluding biosimilars and vaccines).
As part of expanding the injectable business, Aurobindo is setting up a dedicated injectable facility in Vizag for the European Union and other global markets, the company said in its latest annual presentation, the report said.
Aurobindo has built a strong presence in injectables across delivery systems such as liquid and lyophilised vials, bags, ampoules, and prefilled syringes. It has completed the construction of an injectable facility in the US. The Vizag plant is expected to be ready for commercial production in the next 15-18 months.
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