Aurobindo Pharma Limited has disclosed the completion of its acquisition of A1 Biochem Labs (India) Private Limited. As part of the definitive agreements, Dr. Rajendra Gadikota, the former promoter of the A1 Biochem group, subscribed to a 20% stake in the entity on a fully diluted basis.

The transaction was executed through Apitoria Pharma Private Limited, a wholly owned subsidiary of Aurobindo Pharma. Initially, Apitoria acquired 100% of A1 Biochem Labs, making it a step-down subsidiary of the parent company. The subsequent allotment of securities to Dr. Gadikota alters the ownership structure while maintaining the subsidiary relationship under the Companies Act, 2013 and SEBI Listing Regulations.

Transaction Details and Stakeholding

Dr. Gadikota subscribed to 89,94,500 equity shares and 2,41,05,500 Compulsory Convertible Debentures (CCDs) in A1 Biochem Labs. This subscription represents a 20% stake on a fully diluted basis. Consequently, A1 Biochem Labs ceases to be a wholly owned subsidiary of Apitoria, which retains an 80% holding.

The allotment process was completed on September 30, 2026. The consideration received by A1 Biochem Labs for these securities is detailed below:

Regulatory Disclosures and Related Party Status

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Dr. Gadikota’s participation qualifies as a related party transaction because he serves as a director of A1 Biochem Labs. The company stated that the transaction was conducted at arm's length, with the subscription price determined based on a fair valuation report from a Chartered Accountant. Shareholders of A1 Biochem Labs approved the offer and subscription through a special resolution.

It is noted that Dr. Gadikota is not related to Aurobindo Pharma's promoter group or group companies. However, Apitoria retains an option to acquire this remaining 20% stake in the future as per the terms agreed in the definitive agreements.

Financial Contribution and Timeline

A1 Biochem Labs was acquired during the current financial year, specifically in July 2026. Therefore, it did not contribute to any revenue, income, or net worth of the listed entity as on March 31, 2026. The agreement for the sale was initially entered into on July 23, 2026.

What the Numbers Show

The structure of the deal reveals a significant reliance on debt-like instruments for the minority stake subscription. Of the total ₹33.80 crore raised by A1 Biochem Labs from Dr. Gadikota, ₹24.62 crore (72.8%) came from Compulsory Convertible Debentures, while only ₹9.18 crore (27.2%) was from equity shares. This indicates that the former promoter's initial capital injection is heavily weighted towards instruments that will convert to equity later, potentially diluting existing shareholders further upon conversion, although the current fully diluted stake is fixed at 20%.

Aurobindo Pharma 's subsidiary Acrotech Biopharma has introduced AdQuey ointment in the US market and established a dedicated dermatology division.

Acrotech enters US dermatology with AdQuey ointment

The launch of AdQuey ointment marks Acrotech Biopharma's entry into the US dermatology segment. The move involves the creation of a new dermatology division within the subsidiary, signalling a strategic expansion of its product portfolio in the American market.

The introduction of AdQuey ointment and the formation of a dermatology division represent a notable step for Acrotech Biopharma in broadening its US commercial presence beyond its existing therapeutic areas.