ChrysCapital Invests In Gujarat-Based Pharma Player La Renon Healthcare

Summary: ChrysCapital, a leading private equity firm, has invested $70 million in La Renon Healthcare, a pharmaceutical company based in Gujarat, India. The specifics of the investment are undisclosed, but it’s a significant move in the healthcare sector. Existing investors Peak XV Partners and A91 Partners will retain their stakes in La Renon. La Renon, known for its specialization in various therapeutic segments and numerous patents, joins ChrysCapital’s prestigious portfolio alongside other major Indian healthcare companies. This investment reflects confidence in India’s pharmaceutical industry and is expected to drive growth and innovation in the sector.

In a significant move in the healthcare sector, ChrysCapital, a prominent private equity firm, has expanded its presence by investing $70 million (approximately Rs 585 crore) in La Renon Healthcare, a domestic formulations company based in Ahmedabad, Gujarat. This investment underscores ChrysCapital’s commitment to bolstering its healthcare portfolio within the country.

While the specifics of the investment remain undisclosed, it is unclear whether the $70 million infusion constitutes solely primary capital or if it also involves a secondary share sale from existing stakeholders. Sources familiar with the matter have indicated that Peak XV Partners (formerly Sequoia India) and A91 Partners, existing investors in La Renon since 2015 and 2021 respectively, will retain their stakes post this transaction.

Pankaj Singh, Chairman, and Founder of La Renon Healthcare expressed gratitude towards ChrysCapital, stating, “ChrysCapital is a valued partner in the business. Its investment is an endorsement of La Renon’s capabilities and will also provide impetus to the company’s plan of being in the top 20 Indian pharma companies in the next 5 years. I also thank Peak XV Partners and A91 Emerging Fund LLP for their continued trust in our growth journey.”

Established in 2007 by Pankaj Singh, La Renon asserts itself as one of the rapidly expanding entities in the domestic formulations arena in India, specializing in various therapeutic segments such as nephrology, neurology, gastroenterology, cardio, and diabetic care. Notably, the company boasts over 250 patents across India, the US, EU, and Canada. Its infrastructure includes two API (active pharmaceutical ingredient) units alongside two manufacturing units and a dedicated research and development (R&D) center.

With this investment, La Renon joins a prestigious list of Indian healthcare entities under ChrysCapital’s umbrella, which includes Mankind Pharma, Eris Lifesciences, Torrent Pharma, Ipca Labs, Intas Pharma, and Zydus Cadila, among others.

ChrysCapital, currently operating from its ninth investment vehicle with a corpus of $1.4 billion, has been active in the pharma sector. Recent reports suggest that the firm finalized its exit from Mankind Pharma, marking its second round of investment in the company. Additionally, ChrysCapital ventured into non-pharma territory by acquiring a controlling stake in software engineering and digital services firm Xoriant earlier this year.

This strategic investment by ChrysCapital not only strengthens La Renon Healthcare’s position in the market but also reflects the growing confidence in India’s pharmaceutical landscape. As the industry continues to evolve, such partnerships are poised to drive innovation and propel growth within the healthcare sector.