Hyderabad-based Vivimed Labs Ltd has raised Rs 127 crore or $27.6 million from private equity firms NYLIM Jacob Ballas Fund III and Kitara Capital, the manufacturer and exporter of specialty chemicals and pharmaceuticals has said in a statement.
VCCircle was the first to report in August that Vivimed was raising funds from Jacob Ballas Capital and Kitara Capital.
NYLIM Jacob Ballas India Fund, advised by Jacob Ballas Capital, invested Rs 67 crore to subscribe to compulsorily convertible preference shares (to be converted within a period of 18 months) at a price of Rs 315 per unit, picking up 13.2 per cent stake. Kitara invested Rs 60 crore to subscribe to equity shares at a price of Rs 327 per unit for 11.4 per cent stake.
The deal comes at a significant premium as share price of Vivimed Labs was trading at Rs 240.15 on the BSE at 3:29 pm, up 1.37 per cent.
The fundraising will finance Vivimed’s ongoing expansion plans for speciality chemicals at its existing locations in Bidar (Karnataka), a green field 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.
Earlier this month, Vivimed acquired 60 per cent stake in Octtantis Nobel Labs Pvt Ltd, which is engaged in trading, manufacturing and marketing of pharmaceutical and nutraceutical formulations conforming to the GMP Standards of World Health Organization. Recent reports also suggest that it is in talks to buy Uquifa SA of Spain for $55 million.
“Vivimed is a unique player positioned at the confluence of specialty chemicals and pharmaceuticals, and it is poised for strong growth in India and overseas,” said Srinivas Chidambaram, managing director and CEO of Jacob Ballas Capital.
“Vivimed is a globally competitive specialty chemical manufacturing firm, supplying to some of the top Fortune 100 companies. The management’s successful track record of earlier acquisitions abroad and the current inorganic strategy give us an unique opportunity to take part in its changing business model with leverage of back-ended manufacturing in India and the corresponding margin arbitrage in the overseas market,” said Sachin Kamath, founder and CEO of Kitara Capital.