ChrysCap to buy 30% in Corona Remedies for Rs 670 cr


Homegrown private equity fund ChrysCapital will invest about Rs 670 crore ($90 million) to acquire about 30% stake in Ahmedabad-based drug manufacturer Corona Remedies. ChrysCap has signed a deal to acquire a 20% stake from PE firm Creador, which is an existing investor, and another 10% from promoters, two people aware of the development said. The announcement is due in a couple of days.

The deal will value Corona at Rs 2,300 crore. Chennai-based Spark Capital is the advisor for the transaction. Corona Remedies and Creador did not respond to emails seeking comment till press time Sunday. A spokesperson for ChrysCapital declined to comment.

22Agencies

ET was the first to report in November that Kuala Lumpur-based Creador will start discussions with various PE funds to sell its 20% stake in Corona and had hired Spark Capital. In 2016, Creador invested about Rs 120 crore in Corona to pick up a minority stake. Incorporated in 2004, Corona has drugs in therapeutic segments like cardio, diabetic, nutraceuticals, gynaecology, orthopaedic and paediatrics. It has posted revenue of Rs 630 crore and earnings before interest tax depreciation and amortisation (Ebitda) of Rs 140 crore in the financial year 2020-21, according to a source who is privy to the details.

Last year, Corona Remedies bought a minority stake in hormone Active Pharmaceutical Ingredient maker La Chandra Pharmalab. In 2017, it acquired four-drug brands of

– Dilo-BM, Dilo-DX, Stelbid and Vitneurin. The following year, it bought two brands from -Obimet and Thyrocab.



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