Baring PE To Buy Stake In Shilpa Medicare
PE-firm Baring Private Equity Partners is set to buy 10% stake in Shilpa Medicare for $17 Mn.
Shilpa Medicare will issue 2 Mn shares to Baring India Private Equity Fund III at Rs.350 per share.
The promoters of Shilpa Medicare, who currently hold 60% stake, are also buying 500,000 warrants to increase their holding.
Money Matters Financial Services, a domestic investment banking firm, was the sole arranger of the transaction.
Transaction Reference: Reuters
Karnataka-bsed Shilpa Medicare Ltd is engaged in manufacturing of oncology Active Pharmaceutical Ingredients (API), nutritional supplements, fine chemicals, intermediates, herbal products and specialty chemical products.
Its manufacturing facilities are located in Raichur. It has three production blocks each for Oncology, Non-oncology and Custom Synthesis respectively, located in two separate plants.
It has also set up a 3.46 MW Wind Power Generation Unit at Chitra Durga in Karnataka and is supplying power to the state Grid.
Strategic Ventures Fund Ltd (SVF), a PE managed by Frontline Strategy, exited Shilpa Medicare earlier in Jan this year with 4x returns. It sold 1.7 Mn shares representing 7.72% stake it held in Shilpa Medicare till Deceber 2009 through open market sales. SVF invested in Shilpa Medicare in 2005.
Shilpa Medicare's reported a rise in PAT of 22.03% to Rs.13.24 Cr in the Q1 June 2010 as against Rs.10.85 Cr during the previous quarter ended June 2009. Sales rose 34.38% to Rs.64.61 Cr in the quarter ended Q1 2010 as against Rs.48.08 Cr during the previous quarter ended June 2009.
Recently Baring Partners along with Matrix Partners invested Rs.157 Cr in Muthoot Finance Ltd.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 16/08/10 | Shilpa Medicare - Baring PE | Private Equity | Baring India Private Equity Fund III Limited | 17.00 |
| 04/08/10 | Shilpa Medicare - Tano Capital (Exit) | Private Equity | - | |
| 18/01/10 | Shilpa Medicare - Strategic Ventures Fund Exit | Private Equity | 7.39 | |
| 02/10/05 | Shilpa Medicare - Strategic Ventures Fund, | Private Equity | Strategic Ventures Fund | - |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 07/02/12 | M&A | Daiichi Sankyo | Looking For | - | Planned |
| 02/02/12 | M&A | Aanjaneya Lifecare Limited | Apex Drugs And Intermediates Limited | 51.05 | Completed |
| 25/01/12 | M&A | Jubilant Life Sciences Limited | Vanthys Pharmaceuticals Development Private Limited | - | Planned |
| 24/01/12 | M&A | Watson Pharmaceuticals Inc | Ascent Pharmahealth Limited | 395.61 | Completed |
Fund |
||||
| Name | Corpus | Target Sector | Website | KeyContact |
|---|---|---|---|---|
| Baring India Private Equity Fund III Limited | 550 | IT/ITES/Technology Pharma Consumer Goods Services Basic Industries |
www.bpepindia.com | |
Company |
||||
| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| Shilpa Medicare Limited | Vishnukan Bhutada | Plot No.10,Shop No.80, Rajendra Gunj, Raichur |
Ankur Drugs and Pharma Limited Aurobindo Pharma Limited |
www.vbshilpa.com |
 |
Money Matters Financial Services Limited (I-BanK) |
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