Homegrown private equity fund ChrysCapital will invest about Rs 670 crore ($90 million) to acquire about 30% stake in Ahmedabad-based drug manufacturer Corona Remedies.

ChrysCap has signed a deal to acquire 20% stake from PE firm Creador, which is an existing investor, and another 10% from promoters, two people aware of the development said. The announcement is due in a couple of days.

The deal will value Corona at Rs 2,300 crore. Through the exit, Creador has made a 4.5x return on its investment in five years.

Chennai-based Spark Capital is the advisor for the transaction.

ET was the first to report in November that Kuala Lumpur-based Creador will start discussions with various PE funds to sell its 20% stake in Corona and had hired Spark Capital.

In 2016, Creador invested about Rs 120 crore in Corona to pick up a minority stake. Corona Remedies was the first investment by Creador in the pharmaceutical industry.

Incorporated in 2004, Corona has drugs in therapeutic segments like cardio, diabetic, nutraceuticals, gynaecology, orthopaedic and paediatrics. It posted revenue of Rs 630 crore and earnings before interest tax depreciation and amortisation (Ebitda) of Rs 140 crore in financial year 2020-21.

Last year, Corona Remedies bought a minority stake in hormone Active Pharmaceutical Ingredient maker La Chandra Pharmalab.

In 2017, it acquired four drug brands of

– Dilo-BM, Dilo-DX, Stelbid and Vitneurin. The following year, it bought two brands from – Obimet and Thyrocab.

Creador, founded in 2011 by Brahmal Vasudevan – the former managing director of ChrysCapital, invests in companies across South and Southeast Asia. The firm has raised $565 million for its fourth fund, Creador IV.

ChrysCap has been an active investor in the Indian pharmaceutical sector and its major bets include Mankind Pharma, Eris Lifesciences, GVK Bio, Intas Pharma and Curatio.

Last year, following the onset of the Covid-19 pandemic, the pharmaceutical and healthcare sector in India saw PE investments worth $2.5 billion, a 27% increase compared to 2019, according to data from Venture Intelligence.

Large deals included Carlyle’s acquisitions of a 20% stake in Piramal group’s pharmaceutical business, and a 74% stake in animal health company SeQuent Scientific, for about Rs 1,580 crore last year.

Similarly, KKR acquired about 54% stake in Mumbai-based drug manufacturer JB Chemicals & Pharmaceuticals for Rs 3,100 crore, while Advent International acquired Hyderabad-based API manufacturer Ra Chem Pharma.



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