TA backs India drug ingredients manufacturer

The private equity firm acquired 3.02 million shares for INR570 apiece, according to a filing, which equates to a 3.7% stake. Shilpa had two existing PE investors as of June 2016: Baring Private Equity Partners India, which had 9.22%, having investing I the company in 2010; and Tano Capital, which owned 8.01%, having committed capital in 2012 and 2014.

The company produces active pharmaceutical ingredients (APIs) for approximately 50 generic medicines from its base of eight manufacturing sites and two research and development facilities. It specializes in cancer drugs but also works on antiretroviral products and biotech treatments.

Revenue came to INR6.82 billion in the 2016 financial year, up from INR5.71 billion the previous year. Net profit rose to INR1.1 billion from INR840.9 million over the same period.

This is the second private equity commitment to an Indian drug ingredients manufacturer in a fortnight after Morgan Stanley Private Equity Asia invested $25 million in ZCL Chemicals. TA's other India healthcare exposure includes Dr. Lal PathLabs, a medical diagnostic services chain that went public in April 2016.

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• Topics
• South Asia
• Healthcare
• PIPEs
• TA Associates
• India