Aurobindo is a huge deal!

Blackstone has a majority stake in the injectable business

New Delhi, March 21: Global private equity fund Blackstone is likely to acquire a major stake in Hyderabadi pharma company Aurobindo Pharma’s injectable business, according to sources close to the deal. Sources said that three global funds, Blackstone, Bearings, PE Asia and KKR, have already held talks with Aurobindo to buy the stake and a deal could be finalized for Blackstone. In May 2021, Aurobindo Pharma decided to transfer its injectable business to its subsidiary Yugia Pharma Specialties. It is in this context that it is in talks with various PE funds to sell a majority stake in it. Kotak Mahindra Capital, which is acting as an advisor to the deal, is reported to have valued the total injectable business of Aurobindo Pharma at $ 3.4-4 billion (Rs 26,000-30,000 crore).

Demerger after the deal

Analysts say Yugia Pharma Specialties will be split from Aurobindo after a major share sale, while Aurobindo Pharma, a similarly listed company, will be split into two. Aurobindo Pharma Board has recently set up a committee with independent directors to explore alternatives such as Yugia demerger and restructuring, said Aurobindo Pharma CFO Subramanian.