Global private equity major Blackstone is to sell its entire 13.01 per cent stake in Pune-based Emcure Pharmaceuticals Ltd to Bain Capital for about Rs 700 crore.

 

This was the PE major’s first investment in India wherein it had pumped in Rs 230 crore ($49 million) in 2006.

 

The PE major, which holds the stake through one of its Mauritius-based entities, is exiting the venture with three times its initial investment.

 

This is the second exit for Blackstone after it exited BPO firm Intelenet Global Services in 2011 with a similar return on investments. The PE firm sold its stake in the outsourcer to the U.K.-based Serco Group in an all-cash deal of about Rs 2,861 crore.

 

Emcure, ranked as the 14th largest pharmaceutical company in India in terms of domestic sales, is into developing, manufacturing and marketing of pharmaceutical products globally.

 

The transaction is subject to conditions under contract and law including approvals such as Foreign Investment Promotion Board (FIPB) approval, Blackstone said in a statement.

 

“Blackstone has been a valuable strategic partner for us over the last few years. In addition to providing growth capital to expand our business multi-fold, it also shared strategic insights to manage our fast growing business effectively,” said Satish Mehta, Emcure’s Managing Director and Chief Executive Officer.

 

Earlier on Monday, Akhil Gupta, who has been the face of private equity major Blackstone India for the last eight years, has stepped down as its Managing Director.

 

Gupta, 61, however will continue with the company as its non-executive chairman. Blackstone named Amit Dixit and Mathew Cyriac to jointly lead its private equity business in India.

 

Blackstone has been significantly active in India since 2006 and has invested a total of $2.9 billion across sectors.

 

manisha.jha@thehindu.co.in

rajesh.kurup@thehindu.co.in

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