ChrysCapital explores exit from Eris Lifesciences

Private equity firm ChrysCapital is exploring options to exit Ahmedabad-based pharmaceutical company Eris Lifesciences Pvt. Ltd, two people familiar with the matter said. 

ChrysCapital, which exited Mankind Pharma last year, has sent feelers to other private equity firms to sell its stake in Eris, the people said on the condition of anonymity. The PE firm is also speaking to merchant banks for a possible listing of Eris, they said.

The Mint newspaper reported earlier on Wednesday that merchant banks had been asked to pitch in the next few weeks for a potential listing of Eris. The company could look at a public offering of Rs 600-700 crore, the report said. 

According to one of the persons cited above, around 20-25% stake in Eris Lifesciences may be available, should the company choose to list. Merchant banks are likely to make pitches in the first week of September, the person added.  

Eris Lifesciences and ChrysCapital did not immediately respond to emailed requests for comment.

However, in a conversation with VCCircle on 11 August, ChrysCapital managing director Sanjiv Kaul had denied the firm’s exit preparations from Eris just yet and said reports of its exit were “canards spread in the market”. The investment was made only in 2011 and the firm had ample time to exit, Kaul said at the time.

On 23 June, The Economic Times had reported that ChrysCapital was speaking with private equity firms Apax Parters, Advent International, Multiples Alternatives, Barings Asia and Carlyle to sell its 16% stake. The report also cited Eris founder Amit Bakshi as saying that the PE firm might not exit for another two years.

Eris was founded in 2007 and makes drugs for cardiac care, diabetes, respiratory, dermatology and various other segments. It has annual revenue of around Rs 800 crore, the people cited above said. The company reported a net profit of Rs 66 crore on net sales of Rs 557 crore for the year through March 2014, as per VCCEdge, the data research platform of VCCircle, based on the company’s filings to the Registrar of Companies.

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