Mumbai: In what can be termed as the largest private equity deal in Indian healthcare industry till date -Mankind Pharma has agreed to sell its 10 percent stake to ChrysCapital and its global sponsors for about $350 million, or Rs 2,280 crore according to a recent report in TOI.
ChrysCapital will return to the Ramesh Juneja-led Mankind Pharma as it had sold its 11 percent stake to Capital International last year. The promoters family controls 89 percent stake.
Last month ChrysCapital has made surprise bid and snatches the deal from global rivals Advent International and Carlyle Group.
TOI reports that ChrysCapital partner Sanjiv Kaul came back into the company following an informal meeting with Mankind promoters three weeks ago. Till then Mankind had received two bidding offers from Advent and Carlyle, but was open to ChrysCapital’s return.
Confirming the deal, Mankind Pharma CEO Rajeev Juneja told TOI, “We have huge respect for Sanjiv Kaul and ChrysCapital. They have added tremendous value to the company and the board. We are happy to welcome them back in next phase of growth.”
ET has reported that this will value India’s fifth-largest drug maker at about $3.5 billion.
ChrysCapital through Kaul has invested $300 million in pharma companies, generating over five-fold returns until now, possibly the best consistent profitable exits in Indian private equity business. ChrysCapital has backed several emerging Indian pharma powerhouses such as Intas, Torrent, Zydus and GVK Bio among others.
“We have always emphasised on affordability – almost one company case in the sector – and have had 23 years of uninterrupted growth. We are happy that affordable medicines are getting the due focus in a market like India,” Juneja told TOI.
As per the news report, Mankind is selling shares to ChrysCapital in a secondary deal. The promoter’s family will continue to hold 79% after the share sale.