Aurobindo Pharma’s A1 Labs Ceases To Be Wholly-Owned Subsidiary, Apitoria Now Holds 80% Stake

Mumbai: Aurobindo Pharma announced on Tuesday that A1 Biochem Labs (India) Private Limited, a step-down subsidiary, is no longer wholly-owned by Apitoria Pharma Private Limited. This follows the subscription of shares and debentures by Dr. Rajendra Gadikota, a former promoter of A1 Biochem Group.

Stake Acquisition Details

Gadikota subscribed to 89,94,500 equity shares and 2,41,05,500 Compulsory Convertible Debentures (CCDs) in A1 Labs. This transaction gives Gadikota a 20% stake on a fully diluted basis.

Apitoria's Reduced Holding

Following the allotment of these securities, Apitoria's stake in A1 Labs has been reduced to 80%. Apitoria had initially acquired a 100% stake in A1 Labs, making it a wholly-owned subsidiary.

Financial Consideration

A1 Labs received ₹9.18 crore for the allotment of equity shares and ₹24.62 crore for the CCDs from Gadikota. The total consideration for these securities amounted to ₹33.80 crore.

Transaction Timeline

The agreement for the stake acquisition was entered into on 23 July 2026. All formalities for the allotment of shares and debentures were completed on 30 September 2026.

Related Party Transaction

The transaction is classified as a related party transaction because Gadikota is a director of A1 Labs. However, the company confirmed that the transaction was undertaken at arm’s length. The subscription price was based on a fair valuation report from a chartered accountant, and shareholders approved the offer through a special resolution.

Disclaimer: This story is based on company exchange filings and is for informational purposes only. Investors should evaluate risks before making decisions.