Carlyle-backed Claris Lifesciences comes up with buyback offer, promoters to participate

Ahmedabad-based pharmaceutical company Claris Lifesciences Ltd has received a go-ahead from its board to launch a buyback of shares representing up to 14.5 per cent stake worth which may costs as much as Rs 231 crore ($37 million).

The offer, which is subject to shareholders approval, would entail buyback of up to 9.25 million shares at Rs 250 a unit. This is a premium of over 25 per cent to its market price.

Claris ended the day at Rs 197.4 a share, down 0.35 per cent on the BSE in a weak Mumbai market on Tuesday.

The firm disclosed its promoters have indicated their intention to participate in the proposed buyback.  At present, the promoter and promoter group owns 60.21 per cent in the company with Carlyle holding 11.4 per cent stake.

Carlyle is currently sitting on unrealised gains of around 55 per cent on its eight year old investment and if it opts to part exit in the buyback it may encash 2x in rupee terms.

Last year a fund managed by the private equity firm OrbiMed picked up a small stake in Claris Lifesciences from one of the promoters of the firm. Earlier, New York-based private equity firm Signet Healthcare Partners bought a stake in Claris.

One year ago, Claris sold majority stake in its infusion business in India and other emerging markets by forming a three-party joint venture with Japan’s Otsuka Pharmaceuticals Factory and Mitsui & Co.

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