Solara plans to deploy the proceeds from TPG Growth to support its expansion plans, and the transaction is expected to close in early 2019, subject to shareholder and regulatory approvals.
Global manufacturer of Active Pharma Ingredients (APIs), Solara Active Pharma, is set to raise an investment of Rs 200 crore (approximately $30 million) from private equity firm TPG Growth.
According to media sources, Solara plans to deploy the proceeds to set up a greenfield manufacturing facility to support its expansion plans, and the transaction is expected to close in early 2019, subject to shareholder and regulatory approvals.
As part of the investment, Ankur Thadani, Vice-President of TPG Growth, will join the Solara board of directors, said media reports.
TPG Growth is the growth capital investment arm of US-based private equity giant TPG. The investment marks its first investment in India's growing life sciences sector, and it adds to its portfolio of investments in domestic healthcare companies. It currently is reported to have assets under management of $13.5 billion.
Shailesh Rao, Head of India for TPG Growth, said that Solara is at the leading edge of a growing life sciences market in India, and TPG Growth wants to be a part of the growth that lies ahead for the business, said media reports. This investment will serve as a cornerstone of our growing efforts to invest in Indian life sciences, according to him.
Chennai-based Solara Active Pharma produces APIs of ibuprofen, ranitidine, praziquantel, gabapentin, sevelamer carbonat and nizatidine. It has operations and distribution in more than 40 countries, spread across five globally-compliant facilities in India. The company also runs two research and development centres in India, staffed by nearly 150 scientists.
In July last year, TPG acquired a minority stake in Sai Life Sciences, a drug discovery, development and manufacturing services provider. It also acquired a stake in Tata Capital.
Last year, TPG Growth also led a $100 million funding round in Bigtree Entertainment Pvt. Ltd, which owns and operates online entertainment ticketing platform BookMyShow.