Warburg Pincus offers $250 m for 11% in Mankind
ChrysCapital, which purchased the stake in 2007 for $24 mn will earn a 9-fold return, striking one of the largest exits in pharma sector by a PE fund.
ChrysCapital, which purchased the stake in 2007 for $24 million (Rs 98.4 crore at the then exchange rate of Rs 41 to a dollar) will earn a nine-fold return, striking one of the largest exits in pharma sector by a private equity fund. The fund will have to exit the company by 2015 as it draws to a close by next year. A fund closes typically in seven years after it raises capital from investors. Investment bankers will be appointed by next month for the same.
“The pre-emptive offer has been made by Warburg Pincus and they are very keen to partner with the company in its next leg of growth,” said a person involved in the deal. “The promoters might also sell some incremental stake to the new investors,” an investment banker with knowledge of the development said.
Sanjiv Kaul, managing director at ChrysCapital, declined comment. A Mankind Pharma spokesperson did not reply to email queries. R C Juneja, who owns 89 per cent in Mankind Pharma, launched the firm with a Rs 50 lakh capital in 1995 after working as a medical representative for India’s third biggest drug maker Lupin Laboratories.
Mankind owns brands like Manforce condoms, pregnancy test kit Prega News and Unwanted brand of contraceptives.
It is valued 20 times its earnings before interest, tax, depreciation and amortization, or operating profit, much more than the $3.7-billion price at which Piramal Healthcare sold its drug business to US drug maker Abbott Laboratories in 2010.
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