la renon: ChrysCap buys small stake in generics company La Renon for Rs 600 cr

Mumbai: The homegrown PE fund ChrysCapital has invested about Rs 600 crore ($70 million) in Ahmedabad-based La Renon Healthcare, valuing it at $800 million. ChrysCap has acquired about 8% stake from the promoter household in a secondary transaction.

Integrated in 2007 by Pankaj Singh, La Renon is engaged within the manufacturing and advertising and marketing of branded generic formulations. ChrysCapital is near buying a minority stake in La Renon Healthcare through secondary sale of shares, at a valuation of Rs 6,500 crore ($800 million), ET first reported on February 12.

At current, promoter Pankaj Singh & household personal about 80% stake within the formulations producer whereas Peak XV Companions (previously Sequoia Capital) owns 14% and home VC fund A91 Companions owns 6% stake in La Renon. In FY24, La Renon posted a income of Rs 1,400 crore and an Ebitda of Rs 300 crore, stated sources. O3 Capital suggested La Renon on the transaction.

Presently, La Renon derives most of its income from nephrology, central nervous system (CNS), important care (CC) and gastroenterology (GE) segments. It has a serious presence within the home formulations market, whereas exports contribute 40-45% of its internet gross sales.

La Renon is ranked twenty fourth amongst the quickest rising pharmaceutical firms in India. Its dietary complement model – Nuhenz Pill – is featured within the prime 300 formulation manufacturers within the home market.

“La Renon is among the many quickest rising firms on this market and has attained management positions throughout a number of area of interest and power therapeutic areas, and ChrysCapital really believes in its transformative potential,” stated Kshitij Sheth, managing director, ChrysCapital.

“I’m delighted to welcome ChrysCapital, one of the sought-after traders, particularly within the pharmaceutical sector, as a valued associate within the enterprise,” stated Pankaj Singh, chairman of La Renon. I’m certain we can leverage their experience and expertise in pharma in rising the corporate, he stated.

La Renon additionally has entered client manufacturers within the domains of oral well being with its progressive model Dente 91 and protein dietary supplements with its model Whey 91, respectively. With over 3,500-members, La Renon has at current two manufacturing items, two API items (one in every of them is USFDA accredited) and an in-house R&D centre.

ChrysCapital’s main investments within the prescription drugs and healthcare sector embody Intas Prescribed drugs, Mankind Pharma, Corona Cures and Eris Lifesciences, Curatio Healthcare and Torrent Prescribed drugs. It has raised greater than $5 billion throughout 9 funds because it was based in 1999 and made about 100 investments throughout sectors.