Billed as the largest private placement by any pharmaceutical company in India, Hyderabad-based Aurobindo Pharma would be issuing 38 lakh (3.8 million) preferential shares with a premium of Rs 594 per share to net Rs 229.52 crore (Rs 2.29 billion).
"Citigroup acted as the exclusive arranger for the placement," an official release said on Monday, adding that the decision on preferential issue was taken at a meeting of the board of directors held in Hyderabad on Sunday.
The equity shares would be issued at Rs 604, Rs 10 being the nominal value, through a preferential offer with Citicorp Banking Corporation, Bahrain getting the major chunk of 16.50 lakh (1.65 million) shares, the release said.
ChrysCapital II, LLC Mauritius has been allotted 900,000 shares while the Aurobindo chairman and main promoter PV Ramaprasad Reddy will be getting 12.50 lakh (1.25 million) shares.
Citicorp, an investment vehicle for funds managed by CVC International, United Kingdom, would now have 5.89 per cent of Aurobindo's fully diluted post-issue equity while the Mauritius company will have 3.21 per cent of equity, it said.
Ramprasad Reddy, whose equity in the company stands at 56.28 per cent, said the induction of long-term partners like CBC and Chryscap will add to positioning of the company globally, while Citigroup director Devenjit Singh described the transaction "as a step towards improving Aurobindo's financial flexibility", the release added.
