ZEE BIZ EXCLUSIVE: Aurobindo Pharma likely to announce demerger of its injectables business in 1-2 weeks; Market Guru Anil Singhvi sees it as a big value creation for company

A big news emerging from the stable of Aurobindo Pharma. The company is planning a demerger of its injectables business. The company could announce about it over the next 1-2 weeks. The proposal has been submitted to the company’s board and there could be a meeting soon. Zee Business Executive Editor Swati Khandelwal brings this Exclusive news. Know full details here! 

Khandelwal said that the announcement of demerger is likely to be announced soon and could be over the next 1-2 weeks. She said that this will be big value unlocking exercise and Aurobindo Pharma has been working on it for quite some time now, she said citing her top sources.

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She said that the proposal has already been put before the board and an approval is likely to come.  

The injectables business accounts for 20 per cent of Aurobindo Pharma’s total sales and the company has been seeing growth in the segment apart from managing to increase its market share, she further said.

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There is a strong revenue potential visible, the Executive Editor said. The company has recently indicated its intention to double its revenues from this particular segment by 2025, she said. 

She said that it appears to be a win-win scenario for the company and investors. 

This stock was trading around Rs 1000, when this news was broken.  

Calling it a big development for Aurobindo Pharma, Managing Editor Anil Singhvi said that the demerger could lead to a significant value creation for the company. The impact of this is certainly to come on the stocks, Market Guru said adding that unlike other pharma stocks, this stock has been a laggard. 

Singhvi said that the company has been indicating about the demerger plans for some time now. He was of the view that the minimum price per share could go up to Rs 1200 per share.  

Market Expert said that he holds a positive view on this stock in the positional term basis. He expects a target price of Rs 1050, he said.