Quadria and TPG Show Interest in $100 Million Investment for 25% Stake in Samarth Life Sciences

Private equity firms Quadria Capital and TPG Capital are looking to invest up to $100 million for a 20-25% stake in Samarth Life Sciences, a company that makes critical care drugs. This information comes from three people familiar with the situation.

The deal is expected to be a secondary transaction, where the company’s promoters would sell part of their stake. No new money will be added to the company through this deal. Secondary transactions usually happen at a discount compared to newly issued shares.

Although no official bids have been made yet, initial discussions are underway, and O3 Capital is managing the deal. Representatives from Samarth, O3, and Quadria have not responded to queries, while TPG has declined to comment.

About Samarth Life Sciences

Founded in 1997 under the name Sohini Holdings & Finance Pvt. Ltd, the company rebranded itself as Samarth Life Sciences Pvt. Ltd in 2004. It was founded by entrepreneur Gunwantlal Shah and focuses on producing a wide range of life-saving critical care drugs for hospitals. Some of its well-known products include Adrenor, Atrapure, Caprin, Cpressin, Distinon, Dexmedine, and Endocryl.

Last year, Samarth made ₹150-180 crore in EBITDA (earnings before interest, taxes, depreciation, and amortization) and is on track to hit ₹200 crore in FY25. The company also exports its products to the UK, South America, Southeast Asia, and Africa.

Samarth plans to expand further by partnering with global pharmaceutical companies, working on biologics and novel drug delivery systems, and exploring contract manufacturing opportunities. It competes with major players like Cipla, Macleods, and Gufic Group in certain categories.

In FY23, Samarth reported ₹340 crore in revenue from operations and a profit of ₹74 crore, according to filings.

Pharma Sector Deals on the Rise

India’s pharmaceutical sector has been active in deal-making, with investors seeking to benefit from changes in global supply chains that favor the country’s healthcare and pharma manufacturing industries.

Earlier this year, Maiva Pharma from Bengaluru secured ₹1,000 crore in funding to build a new manufacturing plant in Tamil Nadu. In April, ChrysCapital invested $70 million in La Renon Healthcare, a formulations firm based in Ahmedabad, and shared its plans to increase investments in healthcare, diagnostics, and pharma manufacturing.

A report by Grant Thornton highlighted that in the September quarter of this year, deals in India’s pharmaceutical and healthcare sectors hit $1.9 billion. However, deal value dropped 91% from the previous quarter due to the absence of large transactions, with most deals being smaller, valued at $5 million or less.