India Resurgence Fund (lndiaRF), promoted by Piramal Enterprises and Bain Capital Credit along with its affiliates, will invest Rs 992 crore in Panacea Biotec.
The investment proceeds will be used for a one-time settlement with existing lenders, general working capital and growth requirements of the company.
Panacea Biotec is a biotechnology company focused on manufacturing and marketing of pharmaceutical formulations, biopharmaceuticals and vaccines.
The investment is structured by way of non-convertible debentures of up to Rs 864 crore and subscription amount of Rs 32 crore towards share warrants to be allotted on a preferential basis.
The subscription amount represents 25 per cent of total amount of Rs 128 crore proposed to be raised upon issuance of equity shares against warrants as per regulations. Subject to exercise of warrants, IndiaRF and its affiliates will collectively end up owning 10.4 per cent stake in the company on a fully diluted basis.
"The purpose of this investment is to not only restructure the company's balance sheet, but more importantly, work closely with the promoters and management team, to drive rapid revenue growth and sustainable profitability improvement," said IndiaRF Managing Director Shantanu Nalavadi.
"IndiaRF continues to remain focused on providing long-term strategic solutions that enable an effective turnaround for high quality companies that have the potential for accelerated growth and profitability," he said in a statement.
Panacea Biotec Managing Director Rajesh Jain said: "We look forward to leveraging their proven global expertise in restructuring and turnarounds, and are certain that our combined efforts will now help accelerate our ambitious growth and profitability targets."
IndiaRF invests capital in the form of both debt and equity in distress situations in the Indian market. It is focused on all sectors other than real estate as an asset class and is committed to enabling positive turnarounds that create value for all stakeholders.
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