ADIA | Intas Pharmaceuticals: Abu Dhabi Sovereign Fund to buy into Intas Pharma

The Abu Dhabi Investment Authority (ADIA), a sovereign wealth fund owned by the Emirate of Abu Dhabi, is set to acquire about 3% in Intas Pharmaceuticals for $250-$270 million (₹2,000 crore) at a valuation of $8.5 billion (₹65,000 crore).

It will buy the 3% stake from existing investor Temasek Holdings, which currently holds about 10% in the Indian drug manufacturer.

Intas’ promoters, the Chudgar family, own 84% in the company at present, while homegrown PE fund ChrysCapital holds 6%.

ADIA, with assets under management worth $800 billion, has a wide exposure in India. Its major investments include Flipkart, Reliance Retail, Mindspace REIT, HDFC Capital, Mphasis, Paytm, Nykaa and Mobikwik. Since 2018, ADIA has invested more than $3 billion in India. Intas Pharma is the seventh largest domestic formulations company, generating nearly 30% of its turnover locally, about 40% from the UK and European markets, and the rest from the United States and other markets.

Spokespersons for Temasek and ADIA declined to comment, while Intas did not respond to ET’s emails till press time on Tuesday.

In 2014, Temasek acquired 10.13% stake in Intas from existing investor ChrysCapital at a valuation of $1.6 billion. ChrysCap had acquired 16.14% stake in Intas for ₹350 crore in two tranches (bought 12% for ₹50 crore in 2005). In 2017, ChrysCap sold 3.01% stake to Capital International at a valuation of $3.5 billion. ChrysCap bought back the stake in May 2020 at a $4.25-billion valuation.

Intas, founded by Hasmukh Chudgar in 1977, is currently managed by the second generation of the Chudgar family – Binish Chudgar, Nimish Chudgar and Urmish Chudgar.

The company has operations in 85 countries backed by 16 manufacturing facilities worldwide. Intas has a field force of more than 7,000 executives who cover more than 500,000 doctors across the country.

(With inputs from health)