Intas Pharma plans 800 Crore IPO to fund acquisitions

New Delhi: Intas Pharmaceuticals, an Ahmedabad-based company, is planning for a public issue of 750-800 crore with an objective to raise fresh funds for acquisitions besides allowing private equity (PE) investor ChrysCapital to partly exit, reports Khomba Sing if the Economic Times.

The issue is likely to hit the capital market around May next year and it is expected to be the biggest in the pharma sector after Zydus Cadila, whose share sale raise 372 crore ten years ago. Intas Pharmaceuticals is looking to sell around 15 percent stake that will value it over 5,000 crore.

For the proposed issue, Morgan Stanley and Kotak Mahindra have been appointed as the bankers to finalize valuation and other details.

In January 2005, PE firm ChrysCapital made its first investment in the pharmaceutical sector by acquiring ICICI Ventures' 12.5 percent in Intas for $11 million. Intas was then valued at around 400 crore. Currently, the Chudgar family owns 88.5 percent stake in Intas and ChrysCapital holds the remaining 11.5 percent.

Intas revenues grew about 39 percent to 1,620 crore in the last fiscal. The company that has been ranked 15th in the highly fragmented local retail market, collects about one-third of its revenues from international business.