The Board of Directors of Aurobindo Pharma in a meeting held at Hyderabad on Nov 29th has decided subject to the approval of the shareholders of the company and other regulatory approvals, the issue on a preferential basis, of an aggregate upto 3,100,000 equity shares of Rs. 5/- each at a price of Rs. 302 /- per equity share (including a premium of Rs. 297 per equity share), totalling upto Rs. 93.62 crore to the investors, Merlion India Fund I Limited, Mauritius or Merlion India Fund II Limited, Mauritius.

The near term fund requirements of the company could be met with a total capital dilution of eight million four hundred thousand shares of Rs. 5/- each and the promoter PV Ramaprasad Reddy has agreed to accommodate the company's target of not exceeding this dilution.

In view of the investment interest shown by Merlion India Fund, PV Ramaprasad Reddy would be eligible for subscription only to the extent, if any, for any reason whatsoever, out of the two million five hundred thousand equity shares warrants of Rs. 5/- each approved under the shareholders resolution dated 5th, November 2003.

The price of Rs. 302 is in accordance with SEBI's guidelines for Preferential Issues considering the date thirty days prior to the date of the shareholders meeting as the relevant date for the purpose of issue of equity shares.

The preferential issue of equity shares to the above investors will be the subject to necessary approvals of the shareholders of the company and also of RBI, SEBI and other regulatory authorities. The board has convened an extraordinary general meeting of the shareholders of the company on December 26th, 2003 at Hyderabad, for this purpose, as per a release by the company.