New Delhi-based pharmaceutical and health management firm Panacea Biotec has raised ₹992 crores ($144 million) from India Resurgence Fund (IndiaRF), a fund promoted by Piramal Enterprises Limited and Bain Capital Credit. The company will use the funds to payback to existing lenders and boost growth.
Panacea Biotec is a progressive, innovative, research & development-focused biotechnology company focused on manufacturing and marketing of pharmaceutical formulations, biopharmaceuticals and vaccines. India Resurgence Fund (IndiaRF), promoted by Piramal Enterprises Limited and Bain Capital Credit, invests capital in the form of both debt and equity in distress situations in the Indian market.
Commenting on the investment, Shantanu Nalavadi, Managing Director, IndiaRF said, “We are pleased to partner with Panacea Biotec, as it embarks on an exciting journey to enhance its market position as a strong, research-focused pharmaceutical and biotechnology company. The purpose of this investment is to not only restructure the Company’s balance sheet but more importantly, work closely with the promoters and management team, to drive rapid revenue growth and sustainable profitability improvement. IndiaRF continues to remain focused on providing long term strategic solutions that enable an effective turnaround for high-quality companies that have the potential for accelerated growth and profitability.”
The investment will follow through the issuance of Non-Convertible Debentures of ₹864 crores and the subscription amount of ₹32 crores towards share warrants to be allowed on a preferential basis. The subscription amount is 25 per cent of the total amount of ₹128 crores proposed to be raised upon issuance of equity shares against warrants as per SEBI Regulations.
Dr Rajesh Jain, Managing Director, Panacea Biotec said, “We are delighted to partner with IndiaRF at this critical juncture in Panacea Biotec’s journey. We look forward to leveraging their proven global expertise in restructuring and turnarounds, and are certain that our combined efforts will now help accelerate our ambitious growth and profitability targets.”
A few days earlier, another drug delivery company Rubicon Research Private Limited raised ₹700 crores ($100 million) from New York-based global growth equity venture capital firm General Atlantic. Last year in June 2018, data science company Elucidata Corporation that develops tools for drug discovery raised ₹11.9 crores ($1.7 million) in seed funding from Hyperplane Venture Capital.