More Details on This News

Aurobindo Pharma Limited announced that its wholly-owned subsidiary, Auro Pharma Limited, has approved the acquisition of the non-oncology prescription formulations business of Khandelwal Laboratories Private Limited. The acquisition was approved in a meeting held on January 1, 2026, and will be conducted on a going concern basis through a Business Transfer Agreement (BTA).

The acquired business includes 23 brands marketed in 67 SKUs and 9 pipeline products, with major portfolios in anti-infective and pain management. For the financial year 2024-25, the business generated a turnover of ₹113.53 crore (INR 1,135.3 Mn) and an EBITDA of ₹29 crore (INR 289.9 Mn). It also includes a field force of around 470 people and over 1600 stockists.

The acquisition is structured as a slump sale and does not involve the acquisition of control or shares of Khandelwal Laboratories. The transaction is considered an arm's length transaction and does not fall within the definition of related party transactions. The promoter and promoter group have no interest in the acquired business. The acquisition aims to expand Aurobindo Pharma's business in the domestic market by adding complementary brands in pain management and anti-infectives.

The acquisition is effective from January 1, 2026, and the transaction was signed and closed on the same date. The consideration for the acquisition is a cash payment of ₹325 crore (INR 3,250 million), subject to true-up adjustments for working capital as per the definitive agreements. No governmental or regulatory approvals are required for this transaction.