Aurobindo Pharma Ltd's subsidiary to form JV in China

Aurobindo Pharma Ltd's wholly owned subsidiary, Helix Healthcare B.V, Netherlands, has on August 29, 2019 entered into an agreement with Shanghai LongJin Investment Company Ltd., China and Sveva Capitals, Hongkong to establish a Joint Venture Company in China under the name of 'Longxiang Pharma Taizhou Co Ltd'., for development, manufacturing, marketing and sale of pharmaceutical products for China excluding Taiwan, Hongkong and Macau.

LongJin and Sveva, the JV partners, are independent companies registered in China and Hong Kong. Helix is a wholly owned subsidiary of Aurobindo Pharma Limited. Other than the above, the parties are not related to the promoter/ promoter group/ group companies of Aurobindo Pharma Limited.

The Commencement of commercial production of JVC is expected during 2022-23.

The total equity will be USD 35 million and it will be funded in proportion to JV partners' shareholding in the JVC.

Helix has the right to appoint 3 directors and LongJin has the right to appoint 2 directors in JVC.

Shares of AUROBINDO PHARMA LTD. was last trading in BSE at Rs.600.7 as compared to the previous close of Rs. 591. The total number of shares traded during the day was 91849 in over 1735 trades.

The stock hit an intraday high of Rs. 603.75 and intraday low of 590.85. The net turnover during the day was Rs. 54936985.

Source : Equity Bulls

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