Indian homegrown private equity (PE) major ChrysCapital is close to investing $100 million in Gujarat-based drug manufacturer Corona Remedies to help the latter fund its organic and inorganic expansion plans, DealStreetAsia has learnt.
The proposed transaction will pave the exit for Malaysian PE firm Creador from the company.
Creador, which acquired a 20% stake in Corona Remedies for Rs 120 crore in 2016, is understood to have held discussions with a host of PE funds to sell its stake over the past few years.
“ChrysCapital has signed the deal to invest in Corona Remedies. As part of the transaction, Creador will fully exit its investment in the company with about 4x returns. Post the investment, ChrysCapital will end up holding a little over 25% in the drug maker,” a source aware of the development said.
However, separate emails sent to ChrysCapital, Creador and Corona Remedies did not elicit any response at the time of publishing the story.
Spark Capital has acted as the exclusive financial advisor on the transaction.
Established in 2004 by Dr. Kirtibhai Mehta and his two sons, Nirav and Ankur Mehta, Corona Remedies is into the business of manufacturing, and distribution of pharmaceutical products.
It makes a range of drugs in fast-growing therapeutic segments such as cardio diabetic, nutraceuticals, gynecology, orthopedic and pediatrics. The company has a manufacturing facility in Solan (Himachal Pradesh) and a warehouse and dispatch department spread over 8,000 square yards near Ahmedabad (Gujarat).
Over the past few years, Corona Remedies has adopted the inorganic route to expand its operations. It acquired brands namely Vitneurin, Stelbid, and Dilo DX from GlaxoSmithKline in 2017.
Founded in Malaysia, Creador invests in companies across South and Southeast Asia. In India, its portfolio companies include Paras Healthcare, Ujjivan Financial Services and Shriji Polymers.
ChrysCapital, which has currently been investing from its eight fund that has a corpus of $850 million, has seen a spate of investments and exits since its inception in 1999. Its portfolio companies in the healthcare and lifesciences sector include GVK Biosciences, Mankind Pharmaceuticals and Curatio, among others.
Apart from healthcare, the firm actively invests in sectors such as financial services, business services, and consumer.
Of late, it has also started ramping up its investments in the new economy sector even as it had earlier stayed away from it.
It made headlines late last year for participating in Dream Sports’s $225 million funding round where the other investors were Tiger Global Management, TPG Tech Adjacencies (TTAD), and Footpath Ventures. Prior to that, in August 2019, ChrysCapital led a $30-million round in Awfis.
More recently, this month, ChrysCapital invested in Safex Chemicals India Ltd – the transaction, which was worth $50 million, involved a combination of secondary sale by existing investor BanyanTree Growth Capital.