The Board of Aurobindo Pharma Limited has recommended a preferential issue of up to 3,800,000 equity shares/ share warrants aggregating to an amount of up to Rs.229.52 crore. Citigroup acted as the exclusive arranger for this placement by Aurobindo Pharma Limited.

The Board of Directors of Aurobindo Pharma Limited, in a meeting held on October 12, 2003 in Hyderabad, has recommended for the approval of shareholders a preferential issue of up to an aggregate of 3,800,000 equity shares and/ or share warrants carrying entitlement to subscribe to equity shares at a price of Rs.604/- per share of Rs.10/- nominal value (inclusive of a premium of Rs.594 per share), totaling up to Rs. 229.52 crore, through a preferential offer to Citicorp Banking Corporation, ChrysCapital II LLC and Mr. P. V. Ramaprasad Reddy.

Citicorp Banking Corporation, Bahrain, is an investment vehicle for funds managed by CVC International, UK, and its investment will constitute up to 5.89% of the Company’s fully-diluted post-issue equity.

ChrysCapital II, LLC, Mauritius is a private equity fund, and its investment into the Company will constitute up to 3.21% of the Company’s fully-diluted post-issue equity.

Mr. P. V. Ramaprasad Reddy, a promoter is also the Chairman of the Company and his investment will change his shareholding from 28.31% (as of September 30, 2003) to 28.93% of the Company’s fully-diluted post-issue equity. The collective holding of promoters and persons acting in concert would reduce from 59.95% (as of September 30, 2003) to 56.28% of the Company’s fully-diluted post-issue equity.

The price of Rs. 604 is in accordance with SEBI’s Guidelines for Preferential Issues considering the date thirty days prior to the date of the shareholder meeting as the Relevant Date in the case of both equity shares and share warrants. Following the preferential issue, the equity capital of the Company will increase up to Rs. 28.0 crore, amounting to an increase of 15.70% over the existing capital base of Rs. 24.2 crore.

The preferential issue of equity shares to the above investors will be subject to necessary approvals of the shareholders of the Company and also of RBI, SEBI and other Regulatory authorities.