Motilal Oswal’s private equity arm has agreed to invest up to Rs 460 crore ($53 million) for a majority stake in Megafine Pharma, an export-focused Active Pharmaceutical Ingredients (API) company, according to an announcement.
The Sanghvi Family, one of the founding-promoter groups, has also increased its stake in the company.
Established in 1995, Megafine specialises in the manufacture and sale of a diverse range of high-value, low-volume niche APIs for chronic therapies. The firm is backward integrated to manufacture its own intermediates while also offering contract manufacturing services for APIs and intermediates to third-party customers.
Its product offerings include anthelmintic drugs (used against parasitic infections), drugs for psychological treatments, diabetic drugs, anti-thyroid agents & beta blockers, and cardiovascular drugs.
According to information on its website, Megafine Pharma is now present in over 40 countries across Europe, Latin America, the Middle East and North Africa (MENA), and APAC.
“India’s API industry is witnessing double-digit growth, driven by increased outsourcing, lower costs and de-risking of global supply chains from China,” Rohit Mantri, Managing Director and Co-Head of Private Equity at MO Alts, said.
Megafine’s investment is the first sole control investment for MO Alts, the company said, adding that it would focus on further strengthening R&D and manufacturing capabilities and creating a platform for further inorganic opportunities.
MO Alts manages assets worth $2 billion across private equity and real estate funds. The private equity vertical focuses on providing growth capital to mid-market companies across its preferred sectors of consumer, financial services, life sciences and niche manufacturing.
Other healthcare investments by the firm in India include HealthKart, Arinna Lifesciences, Symbiotec, Pathkind Labs, Molbio, etc.
