Sector: Pharmaceutical

Orchid Pharma QIP Deal Closures

Deal Details:

  • QIP helped achieving dual objectives of raising growth capital for funding Company’s CAPEX plans as well as Minimum Public Shareholding (MPS) norms
  • Offering received an overwhelming response from investors – a testimony to Dhanuka Group’s ability to successfully turnaround Orchid’s business
  • ~90% of the book was allocated to ‘Long Only’ Investors
  • The deal further strengthens our ability to provide best-in-class advisory services to SaaS and new-age businesses

Contribution:

  • With this QIP, Nuvama has successfully closed the 2nd transaction for Orchid Pharma being the “Banker of Choice”
  • As the left-lead banker, hand-held the Company in end-to-end execution, swift regulatory approvals, thereby ensuring timely launch
  • Nuvama garnered participation from a diverse investor set including Marquee ‘Long Only’ FII and DII investors
  • The deal further strengthens our ability to provide best-in-class advisory services to SaaS and new-age businesses

About:

  • Orchid Pharma Ltd. is an active pharmaceutical ingredients (“API”) manufacturing company with the widest portfolio of cephalosporin APIs along with a few veterinary products, both sterile and oral, selling under a b2b model in over 40 countries.

Manager to the Buyback by Ajanta Pharma Limited

I] Deal Highlights:

  • Ajanta Pharma Limited acquired equity shares worth of ~INR 3,150 mn through buyback route.
  • The Company bought back 22,10,500 Equity Shares through Tender Offer Mechanism which accounted for 2.59% of total equity shares*
  • Strong Response from all shareholders:
Small Shareholder Category 2.1x
General Category
33.8x
Overall
29.1x
Promoter holding increased from 66.11% to 66.21%

II] Our Contribution:

  • We managed the entire buyback process, guided the team on key aspects of the deal and ensured timely completion
  • This is the 1st transaction undertaken in the recently amended Buyback Regulations
  • In spite of tight pricing at 16.81% premium on the market price on the board meeting date, the buyback saw robust subscription of 29.1x times
  • With this transaction, Edelweiss closed 3 buyback deals in last 9 months (Ajanta Pharma Limited- April 2023, SIS Limited-November 2022 ,Route Mobile Limited-September 2022)

*pre buyback not adjusted for Bonus undertaken by the Company

Financial Advisor to Curatio Health Care on its Acquisition by Torrent Pharmaceuticals,Largest M&A in Indian Dermatology Sector

Deal Highlights:

  • Acquisition of 100% stake in Curatio Health Care (I) Private Limited (Curatio), a pure-play dermatology company, by Torrent Pharmaceuticals Limited (Torrent Pharma). Provided exit to the existing PE investors Sequoia Capital and ChrysCapital
  • With this acquisition, Torrent Pharma will be ranked among top 10 players in dermatology and a leader in cosmetic dermatology
  • Transaction was consummated at an equity value of INR 2,000 crs
  • We led the positioning efforts, Advised the company through the complex M&A process, guided on deal contours and helped garner strong interest from potential investors

About Curatio Health Care (I) Private Limited

  • Largest pureplay Indian dermatology company primarily focused on cosmetic dermatology with a portfolio of 50+ brands
  • Leadership position in pediatric dermatology which contributes c.60% to its total revenue*
  • Portfolio consists of leading brands such as Tedibar, Atogla, Spoo, B4 Nappi, and Permite, which are ranked amongst top 5 brands in their respective markets

*FY22 revenue

Seller Broker for Offer for Sale (OFS) by Dhanuka Laboratories Ltd

Deal Highlights:

  • Edelweiss successfully closed the 1st capital market transaction for Orchid Pharma post its take over by Dhanuka Group
  • The OFS received an overwhelming response across all categories of Investors, a testimony to Dhanuka Lab’s ability to successfully turnaround Orchid’s business
    • Non-Retail Investors – ~2.8x; Retail – ~3.5x; Overall – ~2.9x
  • Deal was strategically launched at an attractive Floor Price leading to optimum price realization in both, Non-Retail category and Retail category at ~20% and ~30% premium respectively

Our Contribution:

  • We hand-held the Promoters throughout the process including in company positioning, valuation benchmarking and explaining the potential of Orchid Pharma to investors
  • Enabled Deal Closure in Record Timeline – ~25 days from kick-off to deal launch
  • Garnered interest from large anchor investors giving confidence to launch the trade and ensured participation from diverse investors

* By Edelweiss Securities Limited