International Finance Corporation (IFC), a member of the World Bank Group, has proposed a total investment of $52.5 million to purchase the equity shares of India-based Zenex Animal Health India Private Limited (Zenex) from Multiples Private Equity Fund III (Multiples).
The proposed investment will be divided into two segments. While IFC plans to invest up to $16 million) in the company, the remaining $36.5 million will be coming in from IFC AMC Emerging Asia Fund, the firm said in a disclosure.
Zenex commenced its business with the acquisition of the animal health business of Zydus Animal Health and Investments Limited, a wholly-owned subsidiary of Cadila Healthcare Limited.
The company is backed by a consortium of investors including Multiples, Canada Pension Plan Investment Board and Rare Equity Private Limited.
“The growth of the company will increase the production of quality pharmaceuticals for livestock and poultry, resulting in better yields and increased income for farmers. The project will enable changes to existing markets that deliver sustainable development impact by promoting competitiveness through demonstration, replication, and competition,” IFC said in the disclosure.
Cadila Healthcare focused on the development, marketing and sale of drugs, vaccines and feed supplements for livestock, poultry, companion, and other animals, for markets in India and certain other countries.
Last month, IFC proposed a $50-million investment in Hikal Ltd, a contract pharmaceutical manufacturing company in India.
In October, IFC proposed a $15-million equity investment in Indian agritech startup WayCool Foods and Products Pvt Ltd, which procures, processes, and distributes a wide range of food products including fresh produce, staples, and dairy products.
The international lender had earlier also proposed a $25 million commitment, with an equivalent amount in co-investment envelope, in the second fund of Indian venture capital firm A91 Partners.
Multiples is managed by Multiples Alternate Asset Management Private Limited.
The vehicle, which started raising capital from limited partners (LPs) or investors in 2018, raised “$700 – $750 million,” Ramnath told DealStreetAsia in an exclusive interview in July.
Multiples PE was launched in 2009, following the global financial crisis. The firm closed its first fund at $405 million in 2011. Subsequently, it raised its second fund in 2017 with a corpus of $550 million.