ChrysCapital set for exit in Eris Lifesciences IPO
Indian pharmaceutical company Eris Lifesciences has filed for a domestic IPO that is expected to facilitate a full exit for ChrysCapital Partners, which has been an investor since 2011.
Eris will offer up to 28.9 million shares for sale, representing a 21% stake in the company. Several of Eris’s founders and promoters will part exit in the offer, according to the prospectus. Pricing for the shares has not been announced.
ChrysCapital owns 22.3 million shares in Eris, or a 16.25% holding, through its subsidiary Botticelli. The IPO represents the firm’s latest exit in India’s pharmaceutical sector, following the 2015 sale of its 11% stake in Mankind Pharma to Capital International for more than $200 million and Temasek Holdings’ 2014 purchase of part of its holding in Intas Pharmaceuticals.
Founded in 2007, Eris develops branded pharmaceutical products across a range of therapeutic areas, focusing on chronic and acute issues linked to lifestyle-related disorders such as diabetes and cardiovascular disease.
The company recorded revenue of INR6.2 billion ($93 million) for the year ended March 2016, with diabetes and cardiovascular disease representing over 68% of this figure. Overall revenue grew from INR5.6 billion the year before, with net profit increasing from INR1 billion to INR1.5 billion over the same period.
Eris’s sales efforts focus on urban and semi-urban areas, since lifestyle issues tend to be more prevalent there than in rural areas. The company hopes to enhance its visibility and brand awareness through the IPO, while providing a liquidity opportunity for its shareholders.
Other recent PE-backed IPOs in the Indian healthcare space include pharmaceutical developer Laurus Labs, which raised INR13 billion in its offering last year, providing a partial exit for Warburg Pincus and Eight Roads Ventures. Medical diagnostics service providers Dr. Lal PathLabs and Thyrocare also went public in 2015 and 2016, respectively, raising INR6.4 billion and INR4.8 billion.
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