Blackstone sells Rs 700 crore Emcure stake - Times of India

The author has posted comments on this articleTNN | Dec 20, 2013, 02.08AM IST

MUMBAI: Private equity giant Blackstone Group sold 13.1% stake in Emcure Pharmaceuticals to Bain Capital for Rs 700 crore, booking a three-fold gain on its seven year-old investment.

Blackstone had invested Rs 230 crore in the Pune based privately-held drug maker in 2006 in its India debut deal struck in 2006. The transaction values Emcure at around Rs 6,000 crore, or around $1 billion, in enterprise valuation.

Emcure, founded by first generation entrepreneur Satish Mehta, is ranked as India's 14th largest p harma company, according to IMS Health data. The deal is subject to regulatory approvals.

"This deal tells us that it is important to have patience, and holding power, in private equity investing. There was a time when Emcure was not marked as high as it is currently," Amit Dixit, Senior Managing Director & Co-Head, Blackstone India said.

This marks Blackstone's second profitable exit from an India investment after it sold BPO firm Intelenet to UK-based Serco Plc in 2011.

Emcure reported revenue of Rs 2,800 crore, with operating profit of Rs 600 crore and net profit of around Rs 250 crore. Incidentally, Bain is entering Emcure at a time when the company has filed DRHP for a initial public offer

via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNE1U9m3AGlQSeY2GayAZ7GkjvyWYQ&url=http://timesofindia.indiatimes.com/business/india-business/Blackstone-sells-Rs-700-crore-Emcure-stake/articleshow/27666948.cms

Put the internet to work for you.

via Personal Recipe 2910127