Multiples PE looks to exit Encube Ethicals at a valuation of $800 million

Mumbai: Mumbai-based private equity firm Multiples Alternate Asset Management is all set to exit its investment of about 10% stake in Encube Ethicals, two people aware of the development told
The Economic Times.

The deal is expected to value the Mumbai-based contract development and manufacturing organisation at Rs 5,800 crore, or about $800 million, they said. Encube promoter Mehul Shah will also sell about 5-10% stake in the company, one of the persons said. A clutch of PE funds including Carlyle, Advent and Temasek have been approached for the deal, sources said.

Kotak Mahindra Bank is advising Multiples PE on the stake sale. The PE fund had invested about ₹275 crore, or $40 million, in Encube in 2016.

Founded by Mehul Shah in 1998, Encube Ethicals has its focus on topical semisolid dosage formulations including ointments, creams, solutions and lotions.

It serves pharmaceuticals and cosmetic companies globally. Its major clients include Dr Reddy’s, Alembic, GlaxoSmithKline, Glenmark, Alkem, J&J, L’Oréal, Reckitt Benckiser, Sanofi, Sun Pharma and Torrent Pharma.

Mails sent to Mehul Shah, Encube Ethicals and Renuka Ramnath, managing director and CEO of Multiples Alternate Asset Management, did not elicit any response till press time Monday.

Spokespersons with Carlyle and Advent declined to comment.

Promoters of Bengaluru-based Anthem Biosciences, a contract research and manufacturing services (CRAMS) firm serving the same industries as Encube, also are in the process of diluting a minority stake in the firm at a valuation of $1 billion, or about Rs 7,400 crore.


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