Aurobindo Pharma rose 2.35% to Rs 187.05 at 9:34 IST on BSE after the company said its board has approved to acquire Andhra Pradesh-based Hyacinths Pharma, from its existing shareholders.
The company made the announcement after market hours on Thursday, 12 September 2013.
Meanwhile, the BSE Sensex was up 78.66 points, or 0.40%, to 19,860.54
On BSE, 54,000 shares were traded in the counter compared with average volume of 2.92 lakh shares in the past one quarter.
The stock hit a high of Rs 187.55 and a low of Rs 184 so far during the day. The stock hit a 52-week high of Rs 204.90 on 7 January 2013. The stock hit a 52-week low of Rs 122.20 on 17 September 2012.
The stock had underperformed the market over the past one month till 12 September 2013, rising 1.13% compared with the Sensex's 4.41% rise. The scrip had, however, outperformed the market in past one quarter, rising 4.61% as against Sensex's 3.89% rise.
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The mid-cap company has an equity capital of Rs 2576.64 crore. Face value per share is Re 1.
The board has decided to acquire 100% of the equity stake in Hyacinths Pharma, a company incorporated to manufacture active pharmaceutical ingredients (APIs) from the existing shareholders, Aurobindo Pharma said in a filing to BSE.
Hyacinths has a land admeasuring 52 acres and 80 cents in Andhra Pradesh, which is close to the existing unit of the company. Hyacinths is yet to commence its project but has the necessary statutory approvals in place. Post this acquisition, Hyacinths will become a wholly-owned subsidiary of the company.
The company's board also approved the to acquire 25% stake in Silicon Life Sciences, a company engaged in manufacturing of non-sterile penems, from the existing shareholder, ABS Mercantiles, it added. Post this acquisition, the equity holding of the company would increase to 100%, thereby making Silicon a wholly-owned subsidiary of the company, it said. The acquisition will help the company consolidate its operations, Aurobindo Pharma said.
The company, however, did not disclose financial details of the deals. The Aurobindo Pharma's board also approved the transfer of injectables business to its wholly-owned subsidiary Curepro Parenterals pursuant to a scheme of arrangement, it added.
Aurobindo Pharma reported consolidated net profit of Rs 18.60 crore in Q1 June 2013, as against net loss of Rs 128.91 crore in Q1 June 2012. Net sales rose 41.9% to Rs 1699.60 crore in Q1 June 2013 over Q1 June 2012.
Aurobindo Pharma manufactures generic pharmaceuticals and active pharmaceutical ingredients. The company's manufacturing facilities are approved by several leading regulatory agencies like USFDA, UK MHRA, WHO, Health Canada, MCC South Africa, ANVISA Brazil. The company's robust product portfolio is spread over 6 major therapeutic/product areas encompassing Antibiotics, Anti-Retrovirals, CVS, CNS, Gastroenterologicals, and Anti-Allergics. The company is marketing these products globally, in over 100 countries.
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