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Grapevine: PEs eye stake in GVK Biosciences; FirstCry early investors may sell shares
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Singapore’s Temasek Holdings, Goldman Sachs, and global PE firm Carlyle are competing to acquire around 30% stake in Hyderabad-based contract research organisation GVK Biosciences, a report said.

The new investor will buy out ChrysCapital’s 17% stake. ChrysCapital bought the stake in 2015 for Rs 145 crore. The deal is likely to value the company at Rs 6,000 crore ($800 million), thrice its 2015 valuation.

The GVK Reddy family and DS Brar, the former CEO of Ranbaxy Laboratories — co-promoters of the company — are also expected to monetise their shareholding partially, people in the know told The Economic Times.

Due diligence by the shortlisted players, chosen from among Warburg Pincus, General Atlantic and Quadria Capital, is expected to begin soon. It will be followed by binding bids by the end of March.

In another development, FirstCry’s early investors such as Chiratae Ventures, NEA, Vertex Ventures and Elevation Capital are looking to sell up to 9% stake for $180 million (Rs 1,320 crore) at a valuation of up to $2.1 billion (about Rs 15,400 crore), The Economic Times report said citing three people with knowledge of the matter.

Online-first baby products retailer FirstCry welcomed Japan’s SoftBank Vision fund as its largest investor in early 2019 in its Series E round of funding at a valuation of around $1.1 billion.

Investment bank Avendus Capital has been mandated to look for buyers.

Also, the government is considering creating a bank to help fund port, road and power projects with an equity capital of Rs 1 trillion ($13.7 billion) and this is likely to be part of the Budget announcement in February, a Bloomberg report said citing people with knowledge of the matter.

Initially, the institution will be funded by the government, which will later invite investors. The existing India Infrastructure Finance Co. will be merged with the bank, the people said.

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