Jacob Ballas picks 13.1% stake in Vivimed Labs on conversion of preference shares

NYLIM Jacob Ballas Fund III, managed by Jacob Ballas Capital India Pvt Ltd, has acquired 13.1 per cent stake in Hyderabad-based Vivimed Labs Ltd. This follows the conversion of compulsorily convertible preference shares (CCPS) worth Rs 67 crore ($12.3 million) that the PE firm had subscribed in September 2011.

The company allotted 2.1 million shares at Rs 315 a piece to NYLIM Jacob Ballas India Fund III, LLC, against the conversion of 6,70,000 CCPS of Rs 1,000 each. The conversion was at 12 per cent premium to the market price.

Vivimed Labs’ scrip closed at Rs 281, down 1.8 per cent on the BSE in a weak Mumbai market on Friday.

In September 2011, Jacob Ballas had invested Rs 67 crore to subscribe to the firm’s CCPS. This was part of a larger fundraising move by the company where it raised another Rs 60 crore from Kitara Capital. Kitara had picked up shares directly at a marginally higher price of Rs 327 a piece and held 13.13 per cent stake in the firm, as of Dec 31, 2012.

Post equity dilution, Kitara would own 11.4 per cent while Jacob Ballas would hold 13.1 per cent.

The fundraising was to finance Vivimed’s ongoing expansion plans for speciality chemicals at its existing locations in Bidar (Karnataka), a greenfield project off Vizag at Pydibhimavaram (Andhra Pradesh) and a USFDA-compliant facility for pharmaceuticals at Choutuppal near Hyderabad, as well as acquisitions of pharmaceutical marketing companies in India and the overseas acquisition of an API manufacturing company in Europe.

Last month, Vivimed acquired Hyderabad-based Finoso Pharma Pvt Ltd in a cash-cum-stock deal worth Rs 15 crore ($2.8 million). The transaction involves Rs 10 crore payable in cash including a few tranches in milestone payments besides stock worth Rs 5 crore.

Vivimed, led by the first-generation entrepreneur Santosh Varalwar, operates through two divisions – H&PC actives division that includes its synthetic organic chemistry products and caters to oral care, sun care, skin care, hair care and preservatives, and the specialty pharma division that is into drug delivery and drug discovery, focusing on oncology, arthritis, Syndrome X, macular degeneration, psoriasis and stress.

(Edited by Sanghamitra Mandal)

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