Comments
The equity shares of Aurobindo Pharma are up nearly 4 per cent in early trade on Monday. The company has announced reaching a definitive agreement to sell Natrol LLC, a wholly-owned subsidiary of Aurobindo Pharma USA, Inc., to an affiliate of New Mountain Capital to combine with Jarrow Formulas.
The all-cash transaction is valued at $550 million (₹4,048 crore at the current exchange rate). Subject to customary closing conditions and regulatory approvals, the transaction is expected to close by January. Natrol’s annual sales for the 12 months ended March 31, 2020 was approximately $157 million.
Related Stories
Aurobindo sells US arm to PE firm for ₹4,048 cr
Proceeds from sale to New Mountain Capital to be used to reduce debt, and for new initiativesThe equity shares of Aurobindo Pharma are up nearly 4 per cent in early trade on Monday. The company has announced reaching a definitive agreement to sell Natrol LLC, a wholly-owned subsidiary of Aurobindo Pharma USA, Inc., to an affiliate of New Mountain Capital to combine with Jarrow Formulas.
The all-cash transaction is valued at $550 million (₹4,048 crore at the current exchange rate). Subject to customary closing conditions and regulatory approvals, the transaction is expected to close by January. Natrol’s annual sales for the 12 months ended March 31, 2020 was approximately $157 million.
Over the past year, the stock has generated a return of 64.4 per cent, its profits have risen by 13.9 per cent; The price/earnings to growth ratio of the company is 1.1.
Institutional holdings of the company have increased by 1.49 per cent over the previous quarter to 36.68 per cent.
The stock has gained for the last two days and has generated 1.85 per cent return. The current trading price is at a premium compared to its average historical valuations.
The stock touched an intraday high of ₹814.3 up 3.99 per cent before settling to quote at ₹795.10/apiece up 1.54 per cent. It had also outperformed the Nifty Pharma index by 2.21 per cent.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.