Blackstone exits Emcure Pharma to Bain

Blackstone Capital Partners Fund V originally invested $50 million and holds a 13.09% stake in the company. According to local media, Blackstone will generate a money multiple of almost 3x and an IRR of 17%.

The transaction is subject to conditions, including Foreign Investment Promotion Board (FIPB) approval.

Emcure produces a broad range of pharmaceutical products globally, including chiral molecules, biosimilars, and novel drug delivery systems.

For the year ended March 31, 2012, its revenues rose 33.5% to INR18 billion, while net profit was up 16.3% to INR957 million. Overseas revenues came to INR6.8 billion for the nine months ended December 2012, which represented 45.3% of total revenues.

Emcure's branded generic products are shipped to over 65 countries, and the company has subsidiaries in Dubai, Brazil, South Africa, Singapore and Nigeria and branch offices in Russia and Morocco.

The company was the first PE investment by a Blackstone-managed fund in India. "Since our investment, the company has significantly strengthened its position in the Indian pharmaceutical market and has established a strong presence in the US and other semi-regulated markets," Amit Dixit, co-head of private equity at Blackstone Advisors India, said in a statement.

Blackstone was set to partially exit the investment when Emcure filed a draft red herring prospectus with the Securities and Exchange Board of India in June this year. The company has yet to receive approval from the regulator.

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