Blackstone to sell its stake in Indian drug maker Emcure Pharma to Bain Capital for INR650 crore

By VCPOST Staff Reporter

Dec 20, 2013 04:01 AM EST

American private equity firm Blackstone Group LP has sold its 13.09% stake in Indian drug maker Emcure Pharmaceuticals Ltd. to rival investment firm Bain Capital for INR650 crore.

According to a report by Economic Times, Blackstone will get 2.8 times the value of its initial investment in Emcure. The private equity firm invested INR230 crore in the Pune-based pharmaceutical company in 2006.

The deal values Emcure at INR5,000 crore. Economic Times reported in September that Bain Capital is in advanced talks to buy out Blackstone's stake in the drug company.

The transaction marks Blackstone's second exit from its Indian portfolio. It sold its stake in back-office provider Intelenet to British Serco Group in 2011, the report said.

Meanwhile, Bain Capital's investment in Emcure illustrates the long-term potential of India's pharmaceutical sector. Bain Capital's investments in the county include stakes in Genpact, Hero Group and Himadri Chemicals, Economic Times said.

Emcure had filed with the Securities and Exchange Board of India in June for a INR600 crore initial public offering. The offer is yet to be launched. Emcure is India's 14th largest drug company by sales, the report said. 

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