Private equity company Everstone Capital has agreed to go out drug transport technology employer Rubicon Research by way of promoting its controlling stake to US-primarily based PE company, General Atlantic.
With this exit, Everstone will get hold of a couple of on invested capital of 4.5 and a 92% internal fee of return in three years, it stated in an assertion.
This indicates a payout of as a minimum $148 million for Everstone Capital. Typically, PE corporations investing in India promise Limited Partners an IRR of around 20-30% in rupee phrases.
The firm did now not reveal the precise deal size. However, an Economic Times report in advance in the day stated that General Atlantic is anticipated to pay $220 million for the controlling stake.
The PE firm had received a 70% stake for Rs 2 hundred crores ($33 million then) in the Mumbai-based totally agency in 2016 from its Everstone Capital Partners III fund.
The company’s handling administrators Dr. Arjun Oberoi and Puncham Mukim, who were on the enterprise’s board, helped Rubicon in molecule identification, standard method and with scaling of the enterprise’s manufacturing community, the statement delivered.
Sameer Sain, the co-founder, and CEO of the Everstone Group stated inside the announcement that this investment turned into an instance of the way a healthy dating and team paintings between internal and external stakeholders should produce essential consequences.
Founded in 2000, Rubicon acts as an outsourcing companion for global pharmaceutical firms and gives answers for bioavailability enhancement, gastric retention, taste overlaying, and customizing the discharge profiles of medicine. The organization additionally offers lifecycle management offerings for pharmaceutical products. It makes specialty and branded generics merchandise as well as over-the-counter products.
At the end of March 2018, the business enterprise reported a total income of Rs sixty-nine. Four crores with an EBITDA of Rs 9.43 crore and net earnings of approximately Rs 95.3 lakh. In the monetary yr 2015-16, the firm stated a net income of Rs ninety-one lakh on net sales of Rs 39.64 crore, in keeping with VCCircle’s research arm VCCEdge primarily based at the corporation’s filings with the Registrar of Companies.
The PE firm, which became based in 2006, has approximately $5 billion in property below control in private equity and genuine estate investments.
It has places of work in Singapore, Mumbai, Delhi, Bengaluru, Mauritius, New York, and London.
The non-public equity company had announced the final close of its 1/3 zone-agnostic but client-themed fund— Everstone Capital Partners III LP—at $730 million in September 2015.