International Finance Corporation (IFC), a member of the World Bank Group, has proposed to acquire a stake for up to $52.5 million in Zenex Animal Health India Pvt Ltd. from Multiples Private Equity Fund III (Multiples), according to a disclosure.
The proposed investment involves the purchase of equity shares worth $16 million (around Rs 120 crore) of Zenex Animal Health by IFC, and shares worth $36.5 million (around Rs 273 crore) by IFC’s Emerging Asia Fund (EAF).
EAF is backed by IFC, and other development finance investors such as Korea Development Bank and the Fiji National Provident Fund.
Zenex Animal Health was launched post the acquisition of a wholly-owned subsidiary of Cadila Healthcare Limited, Zydus Animal Health and Investment Limited (ZAHL).
Zenex has a manufacturing facility in Haridwar, that was commissioned in 2007. It has a monthly manufacturing capacity of 60,000 litres of liquid injections, 1,56,000 litres of liquid orals and 15,600 kg tablets.
Though Zenex does not have its own research and testing facility for product efficacy, it collaborates with recognised national research institutes and laboratories for clinical trials/testing before launching the product, the statement said.
IFC has an active LP (limited partner) portfolio in India, makes direct private equity (PE) investments, and also lends to companies.
In September, IFC has proposed an investment in the second fund of A91 Partners, a venture capital (VC) firm floated by former Sequoia Capital executives. The fund made a final close of its second vehicle at $550 million early this month.
In July, IFC and two associate entities announced that they will invest Rs 916 crore in Kerala-based Federal Bank through preferential allotment.
In June, the World Bank unit proposed a loan of up to $50 million for Rabobank, to help the Dutch co-operative bank fund agriculture and renewable energy projects in India. In May, it committed an equity investment of up to $15 million in an India-focused clean energy fund, managed by GEF Capital Partners.
In India, IFC’s commitments for the fiscal year ending June 2021 stood at $1.7 billion, marking 51% from last year. India, as a country, is IFC’s largest client globally.