New Delhi, July 27 -- Piramal Alternatives, the fund management arm of the Piramal Group, has exited its investment in a drugmaker after backing the company through its private credit fund more than two years ago.
In April 2024, Piramal Alternatives invested Rs 110 crore ($13.2 million then) in Noida-based contract development and manufacturing company Biodeal Pharmaceuticals through its Piramal Structured Credit Opportunities Fund. The investment was made via convertible instruments under the fund manager's performing credit strategy.
The fund invested in Biodeal as part of its strategy to back high-growth healthcare and pharmaceutical businesses with strong fundamentals and scalable business models. The company used the proceeds to improve infrastructure, expand operations, and establish a dedicated nutraceuticals manufacturing facility.
On Monday, Piramal Alternatives, which manages $1.5 billion in assets, announced that it had fully redeemed its Rs 110 crore investment in Biodeal. The exit generated an internal rate of return (IRR) of over 20%, the fund manager said.
Biodeal said it will continue to strengthen its pharmaceutical formulation development capabilities and key operations through continued investments in manufacturing, capabilities, and innovation. "Beyond providing growth capital, they encouraged us to strengthen governance, invest ahead of demand, enhance operational discipline and build a stronger foundation for sustainable growth," said Anurag Kumar, chairman and managing director of Biodeal Pharmaceuticals.
"The progress we have achieved over the past two years, from strong revenue growth to improving profitability, is a reflection of the talent and dedication of the entire Biodeal team, whose hard work and commitment have been the true driving force behind this journey," he added.
Biodeal specialises in formulation development and manufacturing across multiple therapeutic segments, including nasal sprays, specialty formulations and complex pharmaceutical manufacturing. The company operates manufacturing facilities and serves more than 600 pharmaceutical partners across over 80 countries.
In FY25, the company's standalone revenue rose more than 45% to Rs 205.8 crore, while net profit increased to Rs 15 crore, according to VCCEdge, the data research platform of VCCircle. In FY26, Piramal said it recorded 60% growth in revenue to over Rs 329 crore and also improved its EBITDA margin.
Meanwhile, Piramal Alternatives has two vehicles under its performing credit strategy: the Piramal Structured Credit Opportunities Fund and the Piramal Alternatives India Credit Opportunities Trust.
Recent investments through these funds include Rs 125 crore in JRG Automotive Industries and Rs 160 crore in Chennai-based Saimirra Innopharm Pvt Ltd.
Published by HT Digital Content Services with permission from VC Circle.