Kuala Lumpur-based private equity firm Creador is set to acquire about 7% stake in domestic pharmaceutical company La Renon Healthcare for ₹800 crore, according to people aware of the development.
The transaction values Ahmedabad-headquartered La Renon at nearly ₹11,000 crore and will see a partial stake dilution by the promoter family as well as an existing investor. Promoter Pankaj Singh and family will sell around 5%, while Peak XV Partners (formerly Sequoia Capital) will offload about 2%.
Following the deal, the promoter family will continue to hold about 66%, while private equity investors together will own around 34%. Current backers of La Renon include ChrysCapital, Peak XV Partners, A91 Partners and Avendus.
The latest funding marks a sharp rise in La Renon’s valuation, which stood at ₹8,000 crore in February, when Avendus Future Leaders Fund bought a 2% stake. Last year, ChrysCapital had acquired an 8% stake in a secondary transaction valuing the company at ₹6,500 crore.
Pankaj Singh, chairman and managing director of La Renon, declined to comment. Mail sent to Creador did not elicit any response until press time.
Founded in 2007 by Singh, La Renon is among India’s fastest-growing branded formulations companies with a strong presence in chronic therapies, particularly nephrology. It has also built a sizeable presence in central nervous system (CNS), gastroenterology, gynaecology and cardio-diabetology segments.
For FY25, La Renon reported ₹1640 crore in revenue and ₹330 crore in EBITDA, and is projected to close the current fiscal with revenues of ₹2,000 crore and EBITDA of ₹450 crore, sources said. While domestic formulations drive its business, exports account for 40-45% of sales.
The company operates through subsidiaries including Stanford Laboratories (formulations), Frimline (medical foods), Enaltec Labs (API research) and Rusoma Healthcare (small-volume parenterals). Its portfolio comprises around 340 formulations.
La Renon is also investing in capacity expansion. It is setting up a new oral solid dosage plant in Rajasthan, which will ramp up production capacity from 100 million tablets/capsules per month to 400 million.
Over the years, La Renon has attracted marquee investors. It raised ₹100 crore from Sequoia Capital in 2015, followed by ₹220 crore from A91 Partners in 2021. Discussions with Goldman Sachs for a larger ₹1,600-crore infusion had been underway earlier but did not materialise.
Founded in 2011 by Brahmal Vasudevan, former general partner and managing director at ChrysCapital, Creador invests in companies across South and Southeast Asia. It has an AUM of $3 billion. Early this year, Creador closed its sixth fund at $930 million, exceeding a $750-million target.
Creador has exposure in the Indian healthcare space through its investment in Corona Remedies, a drug formulation manufacturer, Paras Healthcare, a north India-focused hospital chain, and Accumax Lab Devices.
The transaction values Ahmedabad-headquartered La Renon at nearly ₹11,000 crore and will see a partial stake dilution by the promoter family as well as an existing investor. Promoter Pankaj Singh and family will sell around 5%, while Peak XV Partners (formerly Sequoia Capital) will offload about 2%.
Following the deal, the promoter family will continue to hold about 66%, while private equity investors together will own around 34%. Current backers of La Renon include ChrysCapital, Peak XV Partners, A91 Partners and Avendus.
The latest funding marks a sharp rise in La Renon’s valuation, which stood at ₹8,000 crore in February, when Avendus Future Leaders Fund bought a 2% stake. Last year, ChrysCapital had acquired an 8% stake in a secondary transaction valuing the company at ₹6,500 crore.
Pankaj Singh, chairman and managing director of La Renon, declined to comment. Mail sent to Creador did not elicit any response until press time.
Founded in 2007 by Singh, La Renon is among India’s fastest-growing branded formulations companies with a strong presence in chronic therapies, particularly nephrology. It has also built a sizeable presence in central nervous system (CNS), gastroenterology, gynaecology and cardio-diabetology segments.
For FY25, La Renon reported ₹1640 crore in revenue and ₹330 crore in EBITDA, and is projected to close the current fiscal with revenues of ₹2,000 crore and EBITDA of ₹450 crore, sources said. While domestic formulations drive its business, exports account for 40-45% of sales.
The company operates through subsidiaries including Stanford Laboratories (formulations), Frimline (medical foods), Enaltec Labs (API research) and Rusoma Healthcare (small-volume parenterals). Its portfolio comprises around 340 formulations.
La Renon is also investing in capacity expansion. It is setting up a new oral solid dosage plant in Rajasthan, which will ramp up production capacity from 100 million tablets/capsules per month to 400 million.
Over the years, La Renon has attracted marquee investors. It raised ₹100 crore from Sequoia Capital in 2015, followed by ₹220 crore from A91 Partners in 2021. Discussions with Goldman Sachs for a larger ₹1,600-crore infusion had been underway earlier but did not materialise.
Founded in 2011 by Brahmal Vasudevan, former general partner and managing director at ChrysCapital, Creador invests in companies across South and Southeast Asia. It has an AUM of $3 billion. Early this year, Creador closed its sixth fund at $930 million, exceeding a $750-million target.
Creador has exposure in the Indian healthcare space through its investment in Corona Remedies, a drug formulation manufacturer, Paras Healthcare, a north India-focused hospital chain, and Accumax Lab Devices.
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