2024-10-18 05:45:06 :
Private equity investors including Quadria Capital and TPG Capital have expressed preliminary interest in investing about $100 million for a 20-25% stake in critical care drug provider Samarth Life Sciences, three people familiar with the matter said.
“The transaction is expected to be purely secondary and the promoter group will sell part of its stake,” one of the people cited above said on condition of anonymity. If the deal goes through, it will be the Mumbai-based company’s first external investment. invest. The company is wholly owned by the promoter group.
In a secondary transaction, shareholders sell their shares to existing or new investors, and no new capital is injected into the company. Secondary transactions typically occur at a discount to a company’s newly issued primary stock.
“While no investor has made a bid, they have held preliminary discussions and O3 Capital is executing the mandate,” another person familiar with the matter said. Inquiries emailed to Samarth, O3 and Quadria Capital remained unanswered. A TPG spokesman declined to comment.
life-saving critical care
Established as Sohini Holdings & Finance Pvt. In 1997, the company was renamed as Samarth Life Sciences Pvt. Ltd. Seven years later. Founded by first-generation entrepreneur Gunwantlal Shah, Samarth researches, develops, produces and sells a wide range of life-saving critical care and other medicines to hospitals. Some of its flagship brands include Adrenor, Atrapure, Caprin, Cpressin, Distinon, Dexmedine and Endocryl.
“Last year (fiscal year 2024), the company’s performance $Ebitda Rs 150-180 crore and on track to deliver $2 billion in FY25. ” said the second person. Samarth also exports to the UK and countries in South America, Southeast Asia and Africa.
On its website, Samas outlines plans to aggressively expand and collaborate with global pharmaceutical companies in areas such as the development and manufacturing of genetically modified biologics, to enhance medicines through the use of novel drug delivery systems, and to establish contract manufacturing and joint venture alliances. It competes with larger rivals such as Cipla, Macleods and Gufic Group in some categories.
The company’s operating income for fiscal 2023 is $3.4 billion, with a profit of $74 crore, according to statutory documents furnished by Tofler.
trading boom
India’s pharma sector saw a flurry of deals last year, benefiting pharmaceutical and healthcare manufacturing, as investors sought to tap into diversification of global supply chains.
Earlier this year, Bengaluru-based Maiva Pharma acquired $Funds managed by Morgan Stanley Private Equity Asia and InvAscent are providing Rs 1,000 crore in primary and secondary funding to set up a new manufacturing facility near Hosur in Tamil Nadu.
In April this year, ChrysCapital invested $70 million in Ahmedabad-based domestic formulation company La Renon Healthcare. In May this year, the private equity firm, which has invested in several pharmaceutical companies, revealed to Mint that it plans to increase its investment in healthcare delivery and services such as diagnostics, medical devices, contract development and manufacturing organizations in another investment . A sign of investor optimism in the sector.
Overall, domestic deal value in India’s pharmaceutical and healthcare industry reached $1.9 billion in the second quarter of this year, the highest level since the second quarter of fiscal 2021, Grant Thornton said in a report earlier this week. the highest level.
The report said that despite the strong pace of transactions, the value of transactions fell by nearly 91% from the previous quarter due to a lack of large transactions. The private equity space is driven primarily by smaller deals of $5 million or less, accounting for 76% of total deal volume.
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