HDFC Doubles Aurobindo Wager - Dollar Cost Averaging or Genuine Value?
Price of 
Aurobindo Pharma continues to plummet – Pfizer suing them (along with Ranbaxy & Dr. Reddy's) for Lipitor, loosing $40Mn of revenue.
HDFC institutions pursued averaging (or genuine value) from presumed purchase at 180-200, to current Rs 130, as the stock continued to dive downwards.
Transaction Reference: BS
Recently Aurobindo has acquired UK-based generic formulations firm Milpharm, Sandoz's unit at Dayton, in New Jersey, and Netherlands-based generic pharma company Jonghoud International BV. The contributions from these is expected to move from $70Mn currently to $400-500 MM.
| Q3 | Q2 | Q1 | |
| Unknown HDFC Funds (mostly the ones below) | 5.01 | ||
| HDFC Trustee Company Ltd -HDFC Top 200 Fund | 1.83 | 1.16 | |
| HDFC Trustee Company Ltd HDFC Prudence Fund | 1.12 | ||
| HDFC Trustee Company Ltd HDFC Equity Fund | 1.95 | 1.64 |
The board has meanwhile appointed "Restructuring Committee" – report arriving this month end - to suggest restructuring, spinoffs or demergers into separate formulations and bulk active companies.
Followed by "a few acquisitions in CRAMS space" - one of them already identified stands currently at 70 Cr revenue and will be taken over when it hits Rs 100Cr rev.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 22/08/11 | Aurobindo - HDFC | Private Equity | HDFC PE | - |
| 02/07/09 | Aurobindo Pharma - Standard Chartered PE Exit | Private Equity | 13.81 | |
| 15/05/07 | Aurobindo Pharma - Standard Chartered PE partial exit | Private Equity | 23.00 | |
| 17/02/04 | Aurobindo Pharma - Standard Chartered Private | Private Equity | Standard Chartered Private Equity Limited | 20.00 |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 16/05/12 | Private Equity | Tano Capital | Shilpa Medicare Limited | 1.81 | Completed |
| 30/04/12 | Private Equity | Navis Capital Partners Limited | Twilight Litaka Pharma Limited | 28.57 | Planned |
| 26/04/12 | M&A | Strides Arcolab Limited | Sterile Formulations facility | 23.82 | Completed |
| 26/04/12 | Private Equity | ChrysCapital Investment Advisors | Intas Pharmaceuticals Limited | 57.16 | Completed |
Fund |
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| Name | Corpus | Target Sector | Website | KeyContact |
|---|---|---|---|---|
| HDFC PE | Sector Agnostic | |||
Company |
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| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| Aurobindo Pharma Limited | K Nityananda Reddy P V Ramaprasad Reddy |
Plot # 2, Maitri Vihar, Ameerpet |
Cadila Pharmaceuticals Limited Cipla Limited Arch Pharmalabs Limited Shilpa Medicare Limited |
www.aurobindo.com |
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