Fidelity PE Arm Buys Over 20% in Pharma Co Aptuit for Rs. 200 cr

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Fidelity Growth Partners, the India-focused private equity arm of Fidelity Worldwide, has invested close to Rs. 200 crore in Hyderabad-based pharmaceutical company Aptuit Laurus for over 20% stake, an indication of the continuing lure of the Indian pharma market for foreign investors. Aptuit, which has a turnover of Rs. 500 crore, manufactures active pharmaceutical ingredients, the key component of medicines. It is also a contract manufacturer. “We’re positive on pharma sector in a big way… US pharmaceutical giants are tightening their in-house R&D budgets; US companies will continue to outsource contract manufacturing business to Indian companies,” said Raj Dugar, senior managing director at Fidelity Growth Partners. Fidelity will have two board seats at Aptuit Laurus, which is a leading manufacturer of pharmaceutical ingredients for HIV-AIDS and oncological or anti-cancer drugs. The company was founded by Chava Satyanarayana, former chief operating officer of Matrix Laboratories. “We’ll use the money to fund our capacity expansion initiative. We’re planning to build a new facility at Vizag and expand our existing manufacturing section,” said Satyanarayana.
This is the tenth investment for Fidelity’s PE arm since 2008, the year in which it was set up. The private equity firm recently exited its investment in hosting services provider Netmagic Solutions, selling its stake to NTT Japan. Fidelity Growth also has stakes in engineering company Coastal Projects, telecom power systems manufacturer VMC, logistics firm Transpole Logistics and retail analytics firm Manthan Software. Its investments range from Rs. 50 to Rs. 110 crore.

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