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International Finance Corporation (IFC), the private equity arm of the World Bank, has exited its investments in Dabur Pharma with 41 percent return (not factoring in dividend payout) over a three year period. This translates into a compounded annual growth rate of 12.31 percent.
The exit is believed to be linked to the open offer by German pharma company Fresenius Kabi, which acquired majority control in the company from the Burmans of the Dabur Group early this year.
IFC had picked the stake through a preferential allotment in June 2005. It had picked 12.145 million shares at a price of Rs 54 per share translating into an investment of Rs 65.58 crore.
It has now sold its entire 7.75 percent stake in an off-market deal worth Rs 92.9 crore i.e. a per share value of Rs 76.5, which is the open offer price of Fresenius Kabi. Last month, another institutional investor in the firm LIC had sold its entire 1.67 percent stake at the open offer price.
Fresenius Kabi had acquired 17.58 percent in the open offer which followed the share purchase agreement with the promoters where the Burmans decided to sell out their entire stake. Fresenius Kabi now holds more than 90 percent stake in Dabur Pharma. Incidentally, 90 percent is the threshold level above which a promoter either needs to delist a listed company or dilute its holding to comply with the listing norms.
Dabur Pharma was the pharmaceutical business of the Dabur Group which is focused on the global oncology market. Its oncology product portfolio is being sold through its global footprint across more than 40 countries including the key markets of US and Europe.