InvestorQ : Is it true that some PE players are interested in buying into Granules India?
Debbie Mascarenhas made post

Is it true that some PE players are interested in buying into Granules India?

Answer
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Arti Chavan answered.
1 month ago


That is absolutely correct. In fact, 3 global PE heavyweights; KKR, Bain Capital and Blackstone are keen to acquire controlling stake Granules India. This comes after KKR and Carlyle picked up stakes in JB Chemicals and Sequent Scientific respectively.

Recently, such deal shave seen a rise. The deals are really happen in the active pharmaceutical ingredients or API space and also the contract research and manufacturing services or CRAMS space. That is how Granules also fits into their long term strategy.

Apparently, the Granules promoters have been looking to exit the company and the time has been ripe for some time now. The COVID and the shift to domestic API sourcing to reduce the dependence on China, has only added heft to the local API and CRAMS players.

According to reports by Reuters, Blackstone, KKR and Bain Capital have submitted non-binding bids for the transaction although no details were divulged about the valuation of the transaction. Kotak Mahindra Capital will help Granules promoters in the sale deal.

It may be recollected that Granules is one of the world’s top manufacturers of the popular pain reliever paracetamol. The market cap of Granules is around Rs.9000 crore and the promoters currently hold over 42% in the company, ensuring a huge block for the PE funds.

There have been a series of similar deals this year. KKR bought 54% in JB Chemicals for Rs.3100 crore while Bain Capital had bought Emcure Pharma. Recently Carlyle bought significant stakes in Sequent Scientific and Piramal in the domestic API segment.