Two Dubai-based financial institutions are set to invest $15 million in Hyderabad-based specialised organic compound manufacturer Jupiter Bioscience. Jupiter is raising the funds for its expansion plans in India and overseas. The funds infusion is in addition to an announcement by pharma major Ranbaxy that it would be picking up 14.9% stake in Jupiter Bioscience.
Of the two financial institutions, one would invest $5 million while the other would bring in $10 million. Separately, another foreign institutional investor (FII) is planning to invest $2 million in the company. The details of the investments are expected to be finalised shortly.
When contacted by ET, Jupiter Bioscience chairman and managing director ,Venkat R Kalavakolanu confirmed the funds mobilisation. “Some Middle East financial institutions have shown interest to invest. The company is looking at 5-6 investors, including investors from the US,” he said.
Jupiter Bioscience is raising Rs 100 crore through qualified institutional buyers (QIB) route to scale up its business in India and overseas, especially in manufacturing and research. It’s also planning to invest $5 million to set up a unit in the US as part of its strategy to focus on peptide-based drugs.
Ranbaxy is also on course to pick up 14.9% stake in Jupiter. Ranbaxy has already entered a 10-year global tie-up with Jupiter for global marketing for its specialised organic compounds. By leveraging Ranbaxy’s footprint in more than 100 countries, the company is targeting a turnover of between Rs 500-600 crore in the next three years.
The board of the company has approved the term sheet signed with Ranbaxy and the equity transaction is expected to be finalised in the extraordinary general meeting of the company slated to be held on May 14.
Source : Economic Times