ChrysCapital buys stake in Intas, MMFS

12.47% in Intas for Rs 53 cr; 4.16% in M&M Financial for Rs 60 cr.

ChrysCapital is close to acquiring a 12.47 per cent stake in the Ahmedabad-based Intas Pharmaeuticals for Rs 53 crore.

It has also acquired a 4.16 per cent stake in Mahindra & Mahindra Financial Services (MMFS) for Rs 60 crore through preferential allotment. Post-deal, the valuation of MMFS is pegged at Rs 1,442 crore.

The 12. 47 per cent equity in Intas is owned by a private equity fund, Vikas 1R, which is jointly owned by ICICI Venture and Unit Trust of India. ICICI Venture manages the fund.

Earlier, the government approved of ChrysCapital's proposal to acquire over 5,80,000 equity shares of the pharma company constituting 12.47 per cent of its existing paid-up capital.

As per the existing policy, FDI proposals for the manufacture of licensable drugs and pharmaceuticals, and bulk drugs produced by recombinant DNA technology and specific cell/tissue-targeted formulations require government approval.

According to sources close to the deal, the acquisition is being done at over Rs 912 per share. However, ICICI Venture sources declined to comment on the deal.

Bharat Doshi, executive director (finance) of Mahindra & Mahindra, said ChrysCapital's wholly-owned subsidiary Copa Cabana subscribed to 31.57 lakh shares of Mahindra & Mahindra Financial Services for Rs 190 a share.

The private equity investor has acquired the stake ahead of MMFS' proposed initial public offering of nearly 2.5 crore shares. The price at which the preferential allotment has been made would act as a benchmark for deciding the price band for the IPO, analysts said.

MMFS will be able to mobilise around Rs 475 crore going by the pricing of the preferential allotment. Doshi declined to comment on the pricing, saying M&M subsidiary would file a red herring prospectus shortly.

Doshi said the IPO would include an offer for sale of one crore shares by M&M and sale of fresh shares of up to 1.5 crore.

M&M's stake in MMFS, which is 90 per cent after the preferential allotment, would drop to 65 to 70 per cent after the IPO, depending on the pricing.

Copa Cabana's stake after the issue would come down to 3.6 per cent to 3.75 per cent. The percentage of ESOPs would fall to around 2.25 per cent from 2.7 per cent now.

Mahindra & Mahindra Financial Services is into financing of automobile and tractor purchases and distribution of insurance products. It also finances non-M&M products. Besides, it received permission to sell mutual fund products.

Intas Pharma is a leading player in the high-growth theurapeutic areas of neurology, psychiatry, cardiology, diabetology, gastroenterology and ophthalmology. The company is also credited for developing the first recombinant DNA biotech product for cancer chemotherapy.