ChrysCap buys small stake in generics company La Renon for Rs 600 cr
ChrysCapital has invested about Rs 600 crore ($70 million) in Ahmedabad-based La Renon Healthcare, valuing it at $800 million. ChrysCap has acquired about 8% stake from the promoter family in a secondary transaction.
Incorporated in 2007 by Pankaj Singh, La Renon is engaged in the manufacturing and marketing of branded generic formulations. ChrysCapital is close to acquiring a minority stake in La Renon Healthcare via secondary sale of shares, at a valuation of Rs 6,500 crore ($800 million), ET first reported on February 12.
At present, promoter Pankaj Singh & family own about 80% stake in the formulations manufacturer while Peak XV Partners (formerly Sequoia Capital) owns 14% and domestic VC fund A91 Partners owns 6% stake in La Renon. In FY24, La Renon posted a revenue of Rs 1,400 crore and an Ebitda of Rs 300 crore, said sources. O3 Capital advised La Renon on the transaction.
Presently, La Renon 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% of its net sales.
La Renon is ranked 24th amongst the fastest growing pharmaceutical companies in India. Its nutritional supplement brand — Nuhenz Tablet — is featured in 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
