Injectables consolidation could fetch higher valuations for Aurobindo

Separate listing could capture strong growth rates which is not the case in the current structure

The Aurobindo Pharma stock gained about 3 per cent after the company announced that it will transfer its injectable assets to a wholly owned subsidiary, Eugia Pharma Specialities. The transfer of Unit IV, which makes generic injectables and ophthalmics, has been done for a consideration of Rs 876 crore. The unit had revenues of Rs 926 crore in FY21 and accounted for 5.86 per cent of the company’s turnover on a standalone basis. 

The company said that the reorganisation of assets would increase the operational synergies of the unit and enable it to tie-up with companies to improve capabilities and