Indian Economy News

Private equity firm ChrysCap invests $40 million in Torrent Pharma

Mumbai: Private equity firm ChrysCapital has invested around $40 million in drug company Torrent Pharma, expanding its portfolio of healthcare companies and taking up the total exposure in the sector to nearly $300 million. ChrysCapital, which has over $2.5 billion assets under management in India, will hold the largest non-promoter stake — of around 3% — in the drug firm, sources close to the development told TOI.

Torrent Pharma becomes the seventh company in which the PE major has invested over the past six-seven years. Recently, it shelled out $40 million for fast-growing mid-rung pharma firm IPCA Labs. It also invested in a US-based digital integrator company, LiquidHub, in a cross-border deal.

Torrent Pharma is a significant player in the cardiovascular and central nervous system (CNS) therapies, having successfully established a presence in gastro-intestinal, diabetology, anti-infective and pain management. When contacted, a ChrysCapital official declined to comment.

The PE major, which has built up a well-diversified exposure, has been following a strategy of both "strategic and opportunistic" investments. It has built a position as the largest PE investor in domestic pharma companies. The firm has picked up strategic mid-to-high teens stakes in private companies like Intas Pharma, Mankind Pharma and Eris Lifesciences, while opportunistic 3-4% minority blocks in listed companies like Zydus Cadila, IPCA Labs and Torrent Pharma. These blocks (picked up by the PE company) generally represent the largest non-promoter shareholding in the listed companies. However, ChrysCapital exited from Zydus Cadila after making a significant return on its investment a few years ago.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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