Warburg Pincus sells $83m stake in Indian drugmaker Laurus Labs

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Global private equity firm Warburg Pincus LLC has sold a stake worth about $83 million (Rs 632 crore) in Laurus Labs, a Visakhapatnam-based developer of active pharmaceutical ingredients (APIs).

Warburg Pincus, which invested in Laurus Labs through its affiliate Bluewater Investment Ltd, sold 12.48 million shares in the company at Rs 506.07 apiece on Monday, according to bulk deals data available on the Bombay Stock Exchange (BSE).

According to the data, BNP Paribas Arbitrage acquired 1.5 million shares of the Indian drugmaker at Rs 504.25 apiece on the same day, while Government Pension Fund Global lapped up 9.41 lakh shares at Rs 504 apiece.

Warburg Pincus had acquired a minority stake in Laurus Labs for about Rs 550 crore in October 2014, marking its first investment in the country’s pharmaceuticals industry. Early investors, Fidelity Growth Partners India and Fidelity Biosciences, had partially exited the drugmaker in that transaction.

In May, the US private equity firm had sold about 8 per cent stake worth approximately $49.67 million in Laurus Labs through open market transactions, after previously divesting shares during the company’s initial public offering (IPO) in December 2016.

Laurus is a manufacturer of APIs for anti-retroviral (ARV), oncology, cardiovascular and anti-diabetic therapeutic segments. The firm also has a presence in nutraceuticals and several other products with a customer base that includes several generic pharmaceutical companies in India and abroad. It also has a contract manufacturing business catering to several generic and global pharmaceutical companies.

The company is led by its founder and CEO Satyanarayana Chava. It reported a 155.1 per cent year-on-year growth in consolidated profit at Rs 110.15 crore and 32.1 per cent rise in revenue at Rs 839.14 crore in the quarter ended March 2020.

Meanwhile, Warburg Pincus, which manages assets of over $62 billion across the world, continues to eye investments in India.

In February, the PE fund had said that it was investing $150 million in Gurugram-headquartered Apollo Tyres Ltd. Its other investments in India include SBI General Insurance Co. Ltd, local insurer IndiaFirst, retail real estate platform Virgo Retail Ventures, and education financing provider Avanse Financial Services.

Last November, Reuters had reported that Warburg was looking to raise up to $1.5 billion for its first fund targeting deals in India. The PE firm generally invests across geographies through a single global fund.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.