The private equity firm paid INR910 million for the acquisition of 26 million shares in the company at a price of INR35 per share, and acquired 45 million Global Depository Receipts from Nectar Lifesciences for a consideration of $35 million. Following the investment, Vivek Sett, a partner at New Silk Route, has joined the company’s board.
Nectar Lifesciences shares were trading at INR38.95 at time of press.
The capital injected will be deployed towards the expansion of the company’s generic pharmaceutical business, including the construction of new manufacturing plants, filing of regulatory approvals, research and development and acquisitions, the company said in a filing with the Bombay Stock Exchange.
The investment will also help the company expand its reach in the US, European and Japanese markets, Aryan Goyal, executive director of Nectar Life Sciences, said in the filing.
In January 2010, New Silk Route had agreed to acquire 26 million shares in the company, but the deal was pending shareholder approval. At the time, the company also said it would issue instruments such as global depository receipts, foreign currency convertible bonds and fully or partially convertible debentures of up to INR2.5 billion, but there was no indication that New Silk Route would invest more capital through either of these instruments.
Founded in 2006, New Silk Route manages assets of more than $1.4 billion and has offices in Bengaluru, Dubai, Mumbai and New York.