BackChrysCap sells Mankind stake to Capital International
ChrysCap sold its 11% stake at a price that is 10 times the value of its original investment
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Private equity firm ChrysCapital has sold its entire 11% stake in Mankind Pharma Ltd to Capital International Private Equity Funds at close to 10 times the value of its original investment, two people aware of the development said.
The deal was closed at $215 million, with a valuation of 18 times Ebitda, the first of the two people mentioned above said.
Ebitda refers to earnings before interest, tax, depreciation and amortization, and is a measure of a company’s profitability.
The company sold its 11% stake for a little more than $200 million or ₹ 1,300 crore, The Times of India reported on Thursday.
ChrysCapital had invested $24 million in 2007 for a 11% stake in Mankind Pharma.
On 14 May, Mint reported that Capital International and Warburg Pincus Llc were in advanced negotiations with ChrysCapital to buy its stake in Mankind Pharma.
“ChrysCapital sought an exit from Mankind since the shelf life of Fund V was coming to an end," said Sanjiv Kaul, managing director, ChrysCapital.
“The fund had a wonderful experience with the Junejas throughout the seven years of investment," he said, referring to brothers R.C. Juneja and Rajeev Juneja, who established the company in 1995.
Moelis was the banker to Capital International, while EY advised ChrysCapital on the deal.
A Capital International spokesperson said, “We will decline any additional comment as we do not comment on our holdings."
The deal values Mankind Pharma at about ₹ 13,000 crore, more than thrice its 2014-15 revenue of ₹ 3,500 crore.
Mankind Pharma owns brands including Manforce condoms, Manforce tablets, Manforce Staylong Gel, Unwanted-72 (emergency contraceptives), PregaNews (pregnancy test kit), Adiction (deodorants for men), Gas-O-Fast (sachet for hyper acidity), Kaloree-1 (artificial sweetener) and Heal-O-Kind (anti-bacterial balm).
“There is huge interest in Indian pharma assets from global strategic investors. Hence, the private equity investors are able to exit easily and are also willing to invest since they have good exit options," Harish H.V., partner at advisory firm Grant Thornton India Llp said.
In November, ChrysCapital sold a 10.2% stake in Intas Pharmaceuticals Ltd to Temasek Holdings Pvt. Ltd.
ChrysCapital continues to hold significant stakes in Eris Pharma, IPCA Laboratories Ltd and Torrent Pharmaceuticals Ltd, along with a residual holding in Intas Pharmaceuticals Ltd.
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