New Delhi, June 11 -- Pharmaceutical company Leeford Healthcare Ltd is planning to sell a minority stake in its maiden institutional private equity funding round, at least two people familiar with the development told VCCircle.
Leeford Healthcare, which is said to be among the top 50 pharmaceutical and healthcare companies in India, is looking to raise $100-150 million (Rs 957-1,435 crore) in the proposed transaction, one of the people cited above said, requesting anonymity.
The company is likely to be valued at Rs 10,000-14,000 crore ($1.04-1.46 billion) in the funding round.
Mid-market investment banking firm Citadel Management Consulting is believed to be helping Leeford Healthcare scout for potential investors, the second person said, also requesting anonymity.
Queries sent to the company and Citadel Management remained unanswered till the time of publishing this article.
Founded in 2006, Leeford Healthcare claims to have a portfolio of more than 2,000 products across over 70 therapeutic categories. The company operates 10 manufacturing facilities and employs over 5,000 professionals across functions.
Earlier this year, it announced plans to invest Rs 200 crore over the next three years to scale up its orthopedic and mobility aids division. The division currently offers 32 products across prevention and recovery categories, including lumbar belts, posture correctors, cervical collars, knee caps, wrist supports and sports recovery aids. It plans to expand the portfolio to 50 products by the second quarter of FY27.
In FY25, Leeford Healthcare reported net sales of Rs 1,718 crore, marginally higher than Rs 1,638 crore a year ago. Its profit also rose to 240 crore from Rs 188 crore a year ago, according to VCCEdge, the data and research platform of VCCircle.
The company's plans for a fundraise come amid a series of consolidation moves in the broader Indian pharmaceuticals sector, with both domestic buyers and private equity firms increasing their exposure to the segment.
Sun Pharmaceuticals recently announced one of the largest biopharma acquisitions in recent years with its planned buyout of women's health-focussed company Organon in a deal valued at around $11.75 billion.
Last week, VCCircle reported that Pune-based drugmaker Brinton Pharmaceuticals Ltd is planning a fresh equity fundraising round after a gap of nearly seven years and has hired an investment banker to manage the process.
In April, Everstone Capital, a Singapore-headquartered private equity firm focussed on India and Southeast Asia, committed to invest $270 million in Gujarat-based Apothecon Pharmaceuticals Pvt Ltd and its US-based sister company Navinta.
In February, homegrown private equity firm ChrysCapital agreed to acquire Swiss drugmaker Novartis AG's entire stake in its Mumbai-listed subsidiary for $159 million.
Earlier, in December last year, Senores Pharmaceuticals Ltd acquired a Gujarat-based pharmaceutical company along with five of its drug applications for generic medicines as part of its strategy to expand its presence in regulated markets.
Published by HT Digital Content Services with permission from VC Circle.