Even as the race to acquire Paras Pharma hots up with a host of pharmaceutical and FMCG companies in the fray, there is a strong buzz that homegrown company Emami is within striking distance of clinching the deal.
Industry sources told TOI that Emami’s bid for the consumer healthcare firm was “as good as sealed” . Emami, which has shown a keen interest in Paras Pharma ever since the beginning of the bidding game, is understood to be shelling out around Rs 3,000 crore for a controlling stake in the Ahmedabadbased firm. Currently, while the promoters hold 30% stake in Paras, the remaining 70% stake is held by private equity firms, Actis Advisors and Sequoia Capital.
An Actis spokesperson said the firm does not comment on market speculation . Actis had entered as an investor in Paras Pharma in 2006. TOI had reported about the private equity player looking at exiting Paras in its edition dated June 21, 2010.
When asked to comment on the buzz that Emami’s bid had emerged the winner, the company’s director, Harsh Agarwal, said, “We are not aware of this development. So, we shall not comment on speculation.” Other bidders in the fray include Reckitt Benckiser, Bayer, Taisho Pharmaceuticals and Johnson & Johnson. The Emami stock was up 0.83% or Rs 3.65 on BSE to close at Rs 442.65 on Wednesday.
Paras is now an over Rs 500-crore company, growing in strong double-digits . Given its innovative product portfolio , including brands like Moov, Krack, Dermicool, Livon and D’Cold , Paras Pharma has particularly attracted the attention of a string of Indian and foreign companies. Incidentally, Emami is preparing a war chest of Rs 5,000 crore for acquisitions in the domestic and overseas markets.
The board of the company had recently cleared an enabling resolution to invest Rs 5,000 crore in one or more corporate entities. According to the resolution, Emami could raise up to 2,000 crore in equity and double its
borrowing limit to Rs 3,000 crore.
Industry sources told TOI that Emami’s bid for the consumer healthcare firm was “as good as sealed” . Emami, which has shown a keen interest in Paras Pharma ever since the beginning of the bidding game, is understood to be shelling out around Rs 3,000 crore for a controlling stake in the Ahmedabadbased firm. Currently, while the promoters hold 30% stake in Paras, the remaining 70% stake is held by private equity firms, Actis Advisors and Sequoia Capital.
An Actis spokesperson said the firm does not comment on market speculation . Actis had entered as an investor in Paras Pharma in 2006. TOI had reported about the private equity player looking at exiting Paras in its edition dated June 21, 2010.
When asked to comment on the buzz that Emami’s bid had emerged the winner, the company’s director, Harsh Agarwal, said, “We are not aware of this development. So, we shall not comment on speculation.” Other bidders in the fray include Reckitt Benckiser, Bayer, Taisho Pharmaceuticals and Johnson & Johnson. The Emami stock was up 0.83% or Rs 3.65 on BSE to close at Rs 442.65 on Wednesday.
Paras is now an over Rs 500-crore company, growing in strong double-digits . Given its innovative product portfolio , including brands like Moov, Krack, Dermicool, Livon and D’Cold , Paras Pharma has particularly attracted the attention of a string of Indian and foreign companies. Incidentally, Emami is preparing a war chest of Rs 5,000 crore for acquisitions in the domestic and overseas markets.
The board of the company had recently cleared an enabling resolution to invest Rs 5,000 crore in one or more corporate entities. According to the resolution, Emami could raise up to 2,000 crore in equity and double its
borrowing limit to Rs 3,000 crore.
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