Aurobindo Pharma on Saturday said that after it had paused the merger of the company with Auronext Pharma Private and Mviyes Pharma Ventures Private Limited is now ready to proceed with the scheme of amalgamation, the company announced through an exchange filing.
The amalgamation was put on hold as there were other restructuring proposals in discussion.
Why are is Aurobindo Pharma merging with its subsidiaries?
According to the exchange filing the amalgamation will result in reduction of multiplicity of entities, thereby reducing compliance cost of multiple entities like statutory filings, regulatory compliances, labour law/ establishment related compliances. The amalgamation will also enable appropriate consolidation of activities with pooling and more efficient utilization of their resources, greater economies of scale, reduction in overheads and other expenses and improvement in various operating parameters.
In short the merger would help in the reduction of administrative responsibilities, multiplicity of records and statutory, legal and regulatory compliance and cost savings through legal entity rationalization.
Aurobindo Pharma shares
The shares of Aurobindo Pharma Limited on Friday closed at Rs 516.25, up by 1.30 per cent.
