Aurobindo Pharma set to raise $300 million via QIP

By Indulal PM

MUMBAI: Domestic generic drug maker, Aurobindo Pharma is set to launch a share sale to institutional investors to raise $300 million in what could be one of the largest qualified institutional placement (QIP) issues so far this fiscal.

Aurobindo has hired Citigroup and Bank of America-Merrill Lynch as bankers for the share sale which is expected to take place within a couple of weeks, multiple sources close to the development told ET.

The investment bankers have already launched soft marketing of the deal and are ready to launch the issue, depending on market conditions, sources said.

When contacted, Aurobindo, Citi and BofA-Merrill declined to comment.

Earlier in January, Aurobindo’s board gave approval to raise up to $350 million via ‘issue of shares to qualified institutional buyers under qualified institutional placement’. Hyderabad-based Aurobindo manufactures generic pharmaceuticals and active pharmaceutical ingredients.

The company is directionally moving towards creating a differentiated US pipeline including injectables, peptides, penems, oncology and hormone products, HSBC said in a recent note.