Whalesbook
Quadria Capital Weighs Samarth Lifesciences Buyout
Quadria Capital is reportedly among private equity firms considering a majority stake purchase in Samarth Lifesciences, a critical care drug maker. The deal could value the company at Rs 4,500 crore, reflecting its recent performance gains and market position.
Valuation Gap Remains a Sticking Point
Sources indicate these talks face valuation hurdles similar to past negotiations with investors like EQT, TPG, KKR, and Warburg Pincus. Samarth's promoters want a valuation multiple near 30 times their projected FY26 Ebitda of Rs 160-170 crore. Potential buyers consider this price too high, suggesting a potential stalemate.
Samarth Lifesciences' Strong Growth Track Record
Samarth Lifesciences, established in 1963, offers a wide range of products in critical care, cardiac, anti-infectives, and oncology. The company achieved Rs 727 crore in sales, with a 16% compounded annual growth rate (CAGR), outpacing the industry's 10-12% growth. Its strong position in profitable injectables and sterile products, along with growing international sales, fuels its expansion. Brands such as Caprin and Poly B show strong market demand.
Samarth Seeks Capital for Expansion
The company seeks fresh capital to fund its next phase of growth, including new manufacturing facilities and expanding its domestic market share. Under the potential deal, promoters would keep a 15-20% stake, staying involved post-acquisition. Investment bank O3 Capital is advising the promoters.