ChrysCap acquires small stake in generics company La Renon for Rs 600 crore
New Delhi: Private equity fund ChrysCapital has injected approximately Rs 600 crore ($70 million) into Ahmedabad-based La Renon Healthcare, resulting in a valuation for the drug maker at $800 million. This investment represents an acquisition of around 8% stake from the promoter family in a secondary transaction.
Established in 2007 by Pankaj Singh, La Renon specializes in the manufacturing and marketing of branded generic formulations. The transaction, reported by ET on February 12, reveals ChrysCapital's near acquisition of a minority stake in La Renon Healthcare through a secondary sale of shares, valuing the company at Rs 6,500 crore ($800 million).
As of now, the promoter Pankaj Singh & family retain approximately 80% ownership in the formulations manufacturer, while Peak XV Partners (formerly Sequoia Capital) holds 14%, and domestic VC fund A91 Partners owns 6% stake in La Renon. Sources indicate that in FY24, La Renon recorded a revenue of Rs 1,400 crore and an Ebitda of Rs 300 crore. O3 Capital provided advisory services to La Renon for the transaction.
La Renon primarily generates revenue from nephrology, central nervous system (CNS), critical care (CC), and gastroenterology (GE) segments. It has a significant presence in the domestic formulations market, exports account for 40-45% of its net sales.
Ranked 24th among the fastest-growing pharmaceutical companies in India, La Renon's nutritional supplement brand, Nuhenz Tablet, features among the top 300 formulation brands in the domestic market.
"La Renon is among the fastest growing companies in this market and has attained leadership positions across several niche and chronic therapeutic areas, and ChrysCapital truly believes in its transformative potential," Kshitij Sheth, managing director, ChrysCapital told ET..
In addition to its pharmaceutical ventures, La Renon has diversified into consumer brands, including oral health (Dente 91) and protein supplements (Whey 91). With over 3,500 members, La Renon currently operates two manufacturing units, two API units (one USFDA approved), and an in-house R&D center.
The Hindu quotes, Pankaj Singh, Chairman and Founder, La Renon said, “ChrysCapital’s investment is an endorsement of La Renon’s capabilities and will also provide necessary impetus to company’s ambitious plan of being in top 20 Indian pharma company in next 5 years.”
ChrysCapital's notable investments in the pharmaceutical and healthcare sector include Intas Pharmaceuticals, Mankind Pharma, Corona Remedies, Eris Lifesciences, Curatio Healthcare, and Torrent Pharmaceuticals. Since its inception in 1999, ChrysCapital has raised over $5 billion across nine funds and made approximately 100 investments across various sectors.
