Linux Laboratories, an Indian formulations company, has raised $70 million from ChrysCapital and Tata Capital Healthcare Fund III, according to its press release.
ChrysCapital has acquired a significant minority stake in Linux in the deal.
The transaction provides a full exit to Tata Capital Healthcare Fund II (TCHF II) at approximately 4x returns. At the same time, the deal also marks Tata Capital’s reinvestment in the firm through its third healthcare-focused vehicle.
Avendus Capital acted as the exclusive financial advisor to Linux on the transaction.
Founded in 2007 and headquartered in Chennai, Linux has a portfolio of more than 125 brands spanning around 400 SKUs. The company focuses on central nervous system (CNS) therapies, including epilepsy, neuropathic pain, depression and autism, and has also expanded into dermatology, cardio-diabetics and nutraceuticals.
“This investment aligns with ChrysCapital’s strategy of backing fast-growing domestic formulations companies focused on chronic therapies and led by dynamic entrepreneurs,” said Kshitij Sheth, Managing Director, ChrysCapital Advisors.
Linux reaches more than 60,000 doctors through a field force of over 1,000 medical representatives across seven divisions and has a pan-India presence.
“Linux has been an exemplary partnership for TCHF… Our successful exit from TCHF II is a testament to the substantial value created during this period,” said Visalakshi Chandramouli, managing partner at Tata Capital Healthcare Fund.
“At the same time, our decision to reinvest through TCHF III reflects our continued conviction in the founders, the management team, and Linux’s long-term growth potential,” she added.
Tata Capital Healthcare Fund was founded in 2010 and focuses on healthcare and life sciences investments in India. It manages about $400 million across Funds I and II and the first close of Fund III, and has invested in 21 companies and completed nine exits.
ChrysCapital, founded in 1999, has raised about $8.5 billion across 10 private equity funds, a continuation fund and a public markets fund. Its private equity funds have invested more than $5.6 billion across over 110 deals and completed more than 80 exits
