Carlyle-backed Claris Lifesciences is looking to raise over Rs 300 crore through its maiden public float. As per VCCircle estimates, Carlyle could be sitting on as much as 3x unrealised gains on its four-year-old investment in the Ahmedabad-based drugmaker.
Carlye through First Carlyle Ventures III had invested $20 million (~Rs 90 crore) in Claris Lifesciences in March 2006, through preferential shares that represents 13.89% stake currently. Its average cost iof purchase works out to be around Rs 127 a piece.
Claris is yet to declare how much equity it plans to dilute in the IPO, but assuming the promoters would like to maintain 75% stake in the company after the issue (the maximum allowed as against their current holding of 86%), it could mean about 15% dilution in equity base through fresh issue of around 7.3 million shares. This could translate into an issue price of around Rs 410 a share, over three times the cost price for Carlyle.
Claris plans to use IPO funds to set up some new manufacturing lines besides repayment of Rs 50-crore term loan.
Carlyle’s investment was to fund expansion in capacity, establishing new facilities, R&D and product development initiatives. The 10-year-old firm’s product basket includes the high-end critical care segments such as clinical nutrition, anesthesia, blood products, plasma expanders, transplant, dialysis, anti-infectives, and cardiology.
For the year ended December’09, Claris had net revenue of Rs 621 crore with net profit of Rs 125 crore. With 15% equity dilution, the company could be looking at an EPS of around Rs 21 on its FY’09 earnings post issue translating into a P/E multiple of around 20 if the issue price is close to Rs 410. This would give it a market cap of around Rs 2,395 crore or $540 million.
Some of the other current investments of Carlyle in India include HDFC, Great Offshore and Allsec Technologies.