India Resurgence Fund (IndiaRF) promoted by Piramal Enterprises Ltd and Bain Capital Credit, along with its affiliates has announced an investment of up to ₹992 crore ($144 million) in New Delhi-based Panacea Biotec Limited.
The investment proceeds will be used for a one-time settlement with existing lenders, general working capital and growth requirements of Panacea.
This investment is structured by way of Non-Convertible Debentures (NCDs) of up to ₹864 crore and subscription amount of ₹32 crore towards share warrants to be allotted on a preferential basis.
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The subscription amount represents 25% of total amount of ₹128 crore proposed to be raised upon issuance of equity shares against warrants as per SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
Subject to exercise of warrants, IndiaRF (along with its affiliates) will collectively end up owning 10.4% stake in the company on a fully diluted basis.
Shantanu Nalavadi, Managing Director, IndiaRF said, “The purpose of this investment is to not only restructure the Company’s balance sheet, but more importantly, work closely with the promoters and management team, to drive rapid revenue growth and sustainable profitability improvement.
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“IndiaRF continues to remain focused on providing long term strategic solutions that enable an effective turnaround for high quality companies that have the potential for accelerated growth and profitability,” he said.
Dr. Rajesh Jain, Managing Director, Panacea Biotec said, “We look forward to leveraging IndiaRF’s proven global expertise in restructuring and turnarounds, and are certain that our combined efforts will now help accelerate our ambitious growth and profitability targets.”
Panacea is a biotechnology company focused on manufacturing and marketing of pharmaceutical formulations, biopharmaceuticals and vaccines.