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ChrysCapital close to acquiring 5-6% in pharma co La Renon Healthcare

Homegrown private equity fund ChrysCapital is close to acquiring 5-6% stake in pharmaceutical company La Renon Healthcare via secondary sale of shares at an estimated valuation of ₹6,500 crore, or $800 million, multiple people aware of the development told ET.

ChrysCapital will buy shares from early angel investors and possibly from promoter Pankaj Singh and family too, they said.

Peak XV (formerly Sequoia Capital) owns 14% stake in La Renon Healthcare and domestic VC fund A91 Partners holds 6%. Almost all of the remaining 80% stake is held by the promoter.

Pankaj Singh, chairman and MD of La Renon, and a ChrysCapital spokesperson declined to comment. An email sent to a Peak XV spokesperson did not elicit any responses as of press time on Sunday.

Last year, Wall Street behemoth Goldman Sachs was in advanced discussions to invest about ₹1,600 crore ($200 million) in La Renon Healthcare. However, the discussions were called off later. Goldman was in talks to acquire the 14% stake held by Sequoia Capital and additional stake from the promoters, ET had reported in June 2023.

In FY24, La Renon is expected to post a revenue of ₹1,400 crore and an Ebitda of ₹300 crore, people cited above said.

Incorporated in 2007, La Renon is engaged in the manufacturing and marketing of branded generic formulations. The firm started its operations by marketing formulations in the nephrology therapeutic segment. Presently, it derives most of its revenue from nephrology, central nervous system (CNS), critical care (CC) and gastroenterology (GE) segments. It has a major presence in the domestic formulations market, while exports contribute 40-45% to its net sales.

La Renon is ranked 25th amongst the fastest growing pharmaceutical firms in India.

Its nutritional supplement brand Nuhenz Tablet is featured in the top 300 formulation brands in the domestic market.

In 2015, La Renon Healthcare had raised ₹100 crore from Sequoia Capital in a first round of funding. In 2021, A91 Partners, floated by Sequoia Capital’s former managing directors Abhay Pandey, VT Bharadwaj and Gautam Mago pumped in ₹220 crore in La Renon at a valuation of $500 million.

La Renon operates through its subsidiaries Stanford Laboratories, Frimline, which is into medical foods business, Enaltec Labs, which is into API research and development, and Rusoma Healthcare, which is establishing a manufacturing unit for small volume parenterals (SVP).

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