New Delhi, June 17 -- Local nutraceuticals ingredients maker OmniActive Health Technologies is engaged in an advanced stage of discussion with two global investors over stake-sale transactions, each of them differently structured, at least two people aware of the development told VCCircle.
Founded in 2003, OmniActive operates two business segments, one that focusses on branded wellness and weight-management products such as Lutemax, Capsimax and CurcuWin, and the other in manufacturing of specialty botanicals and extracts.
The company is in active discussions with Danish investor Novo Holdings, the controlling shareholder of global pharmaceutical major Novo Nordisk, which is looking to pick up a minority stake and possibly from the promoters of the company, one of the aforementioned persons said.
Novo Holdings is said to be considering picking up 12-15% stake for an investment of $80 million to $100 million (around Rs 755-943 crore), the person added.
A second person said that EQT on the other hand is looking to buy out a controlling stake in the business, including the shareholding of US-based private equity firm TA Associates.
TA Associates is yet to run a formal process. However, they would be keen to pocket north of Rs 6,000 crore (around $636 million) for a little over 56% stake it held in OmniActive.
OmniActive is looking for a valuation of upwards of $1 billion.
The second person added that if TA Associates initiates a formal auction process, then other bulge-bracket investors may be keen to participate in the transaction.
Apart from TA Associates, OmniActive also counts 360 ONE Asset Management as a minority investor with about 3.2% stake. The company's founder Sanjay Mariwala holds close to 40% stake.
In a separate and earlier conversation, a third person had told VCCircle that the company was eyeing to close the PE deal, followed by an acquisition and list the firm in another 18-24 months at around $2.5 billion valuation.
Email queries sent to OmniActive unanswered till the time of publishing this news article. Spokespersons of Novo Holdings and EQT declined to comment.
VCCircle had earlier reported that private equity major KKR was among the final contenders for the deal, but discussions slowed down amid uncertainty triggered by higher tariffs imposed by Washington on Indian export items.
OmniActive, which has offices in Mumbai and New Jersey, US, has made several acquisitions over the years. Last year, it acquired botanical drugs and healthcare products maker Enovate Biolife using internal accruals. Earlier, in 2017, it bought Bengaluru-based botanical ingredients firm IndFrag.
The company reported consolidated net sales of Rs 885 crore in FY25, up from Rs 817 crore a year ago. Net profit rose sharply to Rs 165 crore in FY25 from Rs 94 crore a year ago, according to VCCEdge, the data and research platform of VCCircle.
Published by HT Digital Content Services with permission from VC Circle.