Aurobindo Pharma slumps after ED arrests director Sarath Reddy

Aurobindo Pharma fell 12.02% to Rs 476.30 after the company informed that its director P. Sarath Chandra Reddy has been arrested by Enforcement Directorate (ED).

"The Company learnt that Mr. P. Sarath Chandra Reddy, Whole Time Director / Promoter Group of the Company has been arrested by Enforcement Directorate. The Company is in the process of ascertaining further details and will do further disclosures as appropriate," the drug maker said in a statement.

The media reported that ED has arrested Sarath Reddy in connection with its probe into the alleged irregularities in the scrapped liquor policy of the Delhi Government. Reddy reportedly had a role in the cartelisation of licenses and alleged kickbacks in the liquor licensing process.

Aurobindo Pharma further clarified that P. Sarath Chandra Reddy is not in any way connected with the operations of Aurobindo Pharma or its subsidiaries.

Aurobindo Pharma develops, manufactures and distributes generic pharmaceuticals, branded specialty pharmaceuticals and active pharmaceutical ingredients.

The pharmaceutical company reported 32.4% fall in consolidated net profit to Rs 520.5 crore in Q1 FY23 from Rs 770 crore in Q1 FY22. Revenue from operations increased 9.4% YoY to Rs 6,235.9 crore in Q1 FY23.

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