Private equity firm ChrysCapital has initiated the process to sell its entire stake in Mankind Pharma to global PE firm Capital International for an undisclosed amount, a company executive told VCCircle.
ChrysCapital MD Sanjiv Kaul told VCCircle: “FIPB application has been made and Junejas of Mankind have identified the new investor which is Capital International, so ChrysCapital will be exiting. The reason for exit is that the shelf life of the fourth fund is coming to an end.”
Email query to Capital International did not immediately elicit a response while Mankind spokesperson declined to comment.
The Times of India, which first reported the development, said ChrysCap is exiting for $200 million.
ChrysCapital had invested $21 million in Mankind almost seven years ago from its fourth fund. It is currently investing from its sixth fund and had been in an exit mode out of its Fund IV for quite some time. The $556 million fund was raised in 2005. US-based tech firm LiquidHub Inc. was the last investment out of the fund made last year.
For ChrysCap this is the second back to back exit from a portfolio firm this year and second from a pharma firm in the last one year.
In March, Kedaara Capital bought ChrysCapital's stake in paper packaging company Parksons Packaging Ltd. Last year ChrysCap part-exited from Intas Pharma by selling bulk of its holding to Temasek.
ChrysCap also has other investments in pharma space including Ipca Labs, Torrent Pharma and Eris Lifesciences, according to VCCEdge, the research platform of VCCircle.
New Delhi-based Mankind Pharma makes prescription products in gastrointestinal, cardiovascular and dermatology medications. It also has a portfolio of OTC brands, including Manforce condoms.
This will be Capital International's first investment in the Indian pharmaceutical space. The firm had previously invested in L&T Finance Holdings.