Divestment of US subsidiary to leave Aurobindo Pharma cash positive

Divestment of the US subsidiary is at good valuations and will help attain net cash positive status

Topics
Aurobindo Pharma | Pharma sales | Pharma stocks

Ujjval Jauhari  |  Mumbai 

Aurobindo Pharma may have consistently impressed on the growth front, but it is among the few Indian pharmaceutical majors to have a stretched balance sheet. The drugmaker’s announcement of divestment of a US subsidiary should address this concern, given it will wipe off more than 80 per cent of its gross debt.

Aurobindo has reached a definitive agreement for the sale of Natrol LLC. This will fetch it $550 million (Rs 4,048 crore) on deal completion. Aurobindo had a net debt of Rs 1,445 crore ($191.3 million) and gross debt of Rs 4,777 crore at the end of the April-June quarter. ...

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First Published: Mon, October 26 2020. 20:11 IST
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