Singapore’s sovereign fund Temasek has got the approval from Competition Commission of India (CCI) to buy part of the stake held by ChrysCapital in Intas Pharmaceuticals Ltd. This paves the way for a secondary PE deal.
VCCircle had first reported that Temasek has emerged as the front-runner for buying the stake for around Rs 840 crore.
Existing PE investor ChrysCapital will be partially exiting its investment in the pharmaceutical formulation developer. The PE firm holds 16.8 per cent stake in the company. It had invested Rs 353 crore through two funds; ChrysCapital III and ChrysCapital V in 2005 and 2012, respectively.
It had originally picked ICICI Venture’s 12.5 per cent in the company in a secondary deal in late 2005 for Rs 53 crore, valuing Intas at Rs 425 crore. When it invested in the company through a fresh issue in 2012 it valued the firm at around Rs 4,800 crore.
Intas was initially planning an IPO to raise funds and provide part exit to ChrysCapital. The pharma firm has twice deferred its plan of going to the bourses. In 2013, Intas wanted to raise Rs 225 crore via IPO. It received SEBI’s nod for the same in September. It let the approval lapse last week.
Prior to that, it filed documents in 2011 for an IPO.
Intas was ChrysCapital's first investment in the pharmaceutical sector. It has invested in several pharma firms since then including Mankind, Cadila, Eris Lifesciences, Ipca Labs and most recently Torrent Pharma.
Temasek has some minority investment in the companies engaged in the pharmaceutical and health sector in India including Medreich Ltd. However, Temasek has entered into an agreement of divestment of its shareholding in Medreich Ltd.
CCI's approval to other deals
After getting commodity market regulator Forward Markets Commission's (FMC) approval, Kotak Mahindra Bank has also got the nod from CCI to acquire up to 15 per cent equity stake in Multi Commodity Exchange of India Ltd (MCX), from Financial Technologies (India) Ltd.
CCI has also given the green signal to Zuari Fertilisers and Chemicals to acquire controlling equity stake in Mangalore Chemicals and Fertilizers Ltd through an open offer to the public shareholders.
(Edited by Joby Puthuparampil Johnson)