Hyderabad, Andhra Pradesh India (PressExposure) September 27, 2011 -- Vivimed Labs Limited ("Vivimed"), one of the leading chemical and pharmaceutical manufacturing companies based at Hyderabad, has announced today the completion of an INR 127 crore ($27.6 million) fund raising through a preferential allotment to two reputed private equity investors: NYLIM Jacob Ballas India Fund III LLC ("NYLIM JB Fund") and Kitara Capital. NYLIM JB Fund invested INR 67 crore to subscribe for compulsorily convertible preference shares ("CCPS") which will be converted within a period of 18 months at a price of INR 315/- per share, for a 13.2% shareholding in Vivimed on a fully diluted basis. Kitara invested INR 60 crores to subscribe for equity shares at a price of INR 327/- per share, for a 11.4% shareholding in Vivimed on a fully diluted basis. The fund raising will finance Vivimed's ongoing expansion plans for Speciality Chemicals at its existing locations in Bidar (Karnataka), Hyderabad, a green field project (SEZ) off Vizag at Pydibhimavaram, a USFDA compliant facility for Pharmaceuticals at Choutuppal near Hyderabad.
Commenting on the fund raise Mr. Santosh Varalwar, Managing Director and CEO of Vivimed said "it indeed was need of the hour to ensure funding of all the Vivimed Labs' aggressive growth plans and will help the company catapult to new levels of performance".
Mr. Srinivas Chidambaram, Managing Director and CEO, Jacob Ballas Capital India Pvt Ltd ("JBC"), investment advisor to NYLIM-JB Fund, said "Vivimed is a unique player positioned at the confluence of Specialty Chemicals and Pharmaceuticals and is poised for strong growth in India and overseas. The transnational team led by Santosh Varalwar has ambitious growth plans and NYLIM-JB Fund is proud to be a long term financial partner to help realize their vision". A nominee of NYLIM JB Fund will join Vivimed's Board of Directors in due course.
Mr Sachin Kamath, Founder and CEO of Kitara Capital said "Vivimed is a globally competitive Specialty Chemical manufacturing company supplying to some of the top Fortune 100 Companies. Management's successful track record of earlier acquisitions abroad and the current inorganic strategy gives us an unique opportunity to take part in its changing business model with leverage of back ended manufacturing in India and corresponding margin arbitrage in the overseas market. The vision, leadership and the past track record of Mr. Santosh Varalwar gives us the added confidence that Vivimed will emerge as a top player in its space in next two years. Kitara Capital is happy to be associated with Vivimed as its long term financial partner."
Veda Corporate Advisors, Chennai, acted as advisor to Vivimed on this transaction. Veda Corporate Advisors Pvt Ltd provides advisory services to mid market companies in private equity fund raising and mergers and acquisitions. In last seven years they closed deals aggregating USD 1.20 billion.
About Vivimed Labs Limited
Vivimed Labs Ltd, a twenty year old Hyderabad based company engaged in manufacture and export of Specialty Chemicals, Pharmaceuticals has five manufacturing plants in India. It has wholly owned subsidiaries abroad - Vivimed Labs Europe Ltd, UK and Vivimed Labs USA Inc in USA to ensure global reach for its expanding range of personal and health care products. Its unique portfolio of products are in pharmaceuticals, skin care, hair care, sun care, oral care, anti microbials segments.
Vivimed's consolidated turnover for FY 2010-11 was Rs.416.00 crs with PAT of Rs. 48.83 crs recording a growth of 21 % in sales, 57 % in net profit.
For more information, please visit http://www.vivimedlabs.com.