By: IPP Bureau
Last updated : June 20, 2022 9:09 am
The company has a total sales of Rs. 25.8 crore during FY 21-22 and Rs. 26.4 crore during FY 20-21.
GLS Pharma 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
The Board of Directors of Aurobindo Pharma Limited at its meeting held on June 17, 2022, has approved the acquisition of 51% equity shares in GLS Pharma Limited, operating in oncology business and having a manufacturing facility in Hyderabad, for a total consideration of Rs. 28.05 crore.
GLS Pharma Limited (GLS) 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. The company was incorporated in 2004 and initiated manufacturing in 2015. The company has a total sales of Rs. 25.8 crore during FY 21-22 and Rs. 26.4 crore during FY 20-21.
This acquisition is undertaken to expand the foothold of Aurobindo Pharma in Oncology business in the domestic market and will also provide inorganic addition to capacity and revenues in oncology business. The completion of the share transfer is estimated before July 31, 2022.
The transaction is proposed to be undertaken at a pre-money equity valuation of Rs. 45.65 crore. The acquisition is proposed through a combination of primary issuance and secondary purchase in the following manner: Share subscription of 204,819 equity shares for Rs. 9.35 crore to be issued by GLS; Share purchase of 409,339 equity shares for Rs. 18.70 crore from the existing shareholders of GLS.
After completion of both the above transactions, Aurobindo Pahrma will hold 51% equity shares of GLS.
Further, the company 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.