Editor’s Note: This article has been updated to include Creador’s statement on the deal.
Indian homegrown private equity (PE) major ChrysCapital has picked up a 27% stake in Gujarat-based drug manufacturer Corona Remedies through a secondary transaction, according to a press statement issued jointly by the companies on Monday.
Following the transaction, private equity firm Creador has made a full exit from Corona Remedies. This full exit in Corona represents a 3.7x return and an IRR of 32% in USD terms (or 4.0x and an IRR of 35% in INR terms), Creador said in a release.
While other financial details of the transaction were not disclosed, DealStreetAsia had reported on March 30 that ChrysCapital was close to investing $100 million in Corona Remedies. The report also mentioned that Malaysian PE firm Creador was set to exit its investment in the Indian firm.
With this exit, Creador III has realised 15% of its committed funds. Creador III acquired a minority stake in Corona in July 2016, for Rs 1,180 million ($17.6 million).
During Creador’s investment period, Corona saw its revenue grow 2.6x and EBITDA grow over 8x.
Creador founder and CEO Brahmal Vasudevan said, “Creador is pleased to have played a vital role in supporting Corona during this exciting growth phase, including being an active investor and providing strategic advice to support its growth plans.”
Commenting on the investment, ChrysCapital director Kshitij Sheth said, “The domestic pharmaceutical market is a large, attractive and resilient market with a healthy outlook. Corona is among the fastest-growing companies in the Indian pharmaceutical market with presence in exciting therapeutic areas including cardiology, diabetology and gynaecology.”
Established in 2004 by Dr Kirtibhai Mehta and his two sons, Nirav and Ankur Mehta, Corona Remedies is in the business of manufacturing and distributing pharmaceutical products. Its product range includes formulations in therapeutic segments like gynaecology, cardio diabetic, nutraceuticals, anti-infective, orthopaedic and paediatrics.
“We intend to leverage our strong management capabilities and ChrysCapital’s extensive sectoral knowledge to drive Corona’s growth as we take it to new heights. Together, we are focused on creating value for all stakeholders,” Nirav Mehta, founder director of Corona Remedies, said.
Spark Capital Advisors and Vertices Partners advised Corona while Shardul Amarchand Mangaldas advised ChrysCapital.