PE firm ChrysCapital invests $70 million in formulations company La Renon

Private equity firm ChrysCapital has invested $70 million in Ahmedabad-based domestic formulations company La Renon Healthcare.

With this investment, La Renon joins a limited list of Indian healthcare companies that are part of ChrysCapital, including Intas Pharma, Mankind Pharma, Eris Lifesciences, Corona Remedies, Torrent Pharma, Ipca Labs, Curatio Healthcare, and Zydus Cadila.

Commenting on the development, Pankaj Singh, founder and chairman of La Renon Healthcare, said that ChrysCapital’s investment is an endorsement of La Renon’s capabilities and will provide the necessary impetus to the company’s ambitious plan of being in the top 20 Indian pharma companies in the next five years.

“I also take this opportunity to thank Peak XV Partners and A91 Emerging Fund LLP for their continued trust in our growth journey,” he added.

Peak XV Partners (formerly Sequoia India) has been invested in La Renon since 2015, with A91 Emerging Fund joining in 2021.

The formulations company did not share if the investor will stay on after this deal.

“Investment Bank o3 Capital was the sole financier of this transaction,” La Renon added in its statement.

Founded in 2007, La Renon claims to be among the fastest-growing companies in the domestic formulations sector in India.

“The company has a strong presence across a wide range of chronic therapeutic segments such as nephrology, neurology, with a robust presence in gastroenterology, cardio diabetic, critical care, and gynaecology,” La Renon said in its official statement.

Commenting on the investment, Kshitij Sheth, managing director of ChrysCapital, said that ChrysCapital is very excited to partner with La Renon, which is among the fastest-growing companies in the attractive domestic pharma formulations market and has attained leadership positions across several niche and chronic therapeutic areas.

Till now, ChrysCapital has made 14 investments in the Indian pharmaceutical sector over the last two decades, each returning stellar returns for the group.

“In its most recent exit, it generated over 3.5 times returns after exiting from Mankind Pharma after holding it for about five years,” the company said.