ChrysCapital Backs Intas Pharmaceuticals Ahead of IPO

Indian drugmaker Intas Pharmaceuticals said it was raising 3 billion rupees ($57 million) from private equity firm ChrysCapital ahead of its initial public offering, writes Reuters. The Ahmedabad-based company said the funds will be used to expand operations and retire part of its debt. ChrysCapital will make a partial or full exit during the public offer, writes Reuters.

Reuters – Indian drugmaker Intas Pharmaceuticals said it was raising 3 billion rupees ($57 million) from private equity firm ChrysCapital ahead of its initial public offering.

The Ahmedabad-based company said the funds will be used to expand operations and retire part of its debt.

Intas will look at launching its IPO, for which it has got approval from the regulator, only next year because of market volatility, Vice-Chairman and Managing Director Binish Chudgar said.

ChrysCapital, which holds 11.3 percent in the company, will increase its holding, ChrysCapital said.

ChrysCapital will make a partial or full exit during the public offer, said Sanjiv Kaul, managing director, ChrysCapital.

Intas will go for no more funding before the listing, Chudgar said.

Private-equity firms invested about $1.9 billion in Indian companies during the quarter ended March 2012, down about 30 percent from last year, according industry tracker, VCCircle.com due to crowded markets and higher valuations.

India’s stock market dropped nearly 25 percent in 2011, making it one of the worst global performers and leaving few options for private equity firms to exit from their portfolio companies through IPOs or block deals.

However, the benchmark index has risen 10.15 percent so far this year.

Intas has revenues of 27 billion rupees with 40 percent from exports and has strong presence in chronic therapy areas like cardio and central nervous system.

($1 = 52.77 rupees) (Reporting by Sanjeev Choudhary; Editing by Rajesh Pandathil)