20 March 2024 – Piramal Enterprises and Bain Capital, a buyout firm led by India Resurgence Fund (IndiaRF Fund), have acquired Ind Swift Laboratories with the support of Axis Bank, which provided a secured debt loan of ₹700 crore. To finance the 1,650 crore purchase of Ind Swift Laboratories’ API business, IndiaRF Fund utilised equity and mezzanine financing from its funds in addition to senior debt borrowed of 700 crore from Axis Bank.
According to a person familiar with the situation, “Axis Bank is providing the senior debt, while IndiaRF Fund is contributing equity and mezzanine debt to facilitate the 100% buyout of the API business.” “This transaction shows that banks are comfortable lending to companies that have changed management, a shift towards lending to previously distressed entities.”
Axis Bank has increased the debt by around three times EBITDA, taking into account the ₹256 crore EBITDA of the corporation. Spokesman Comments were not returned from IndiaRF or Axis Bank.
Conclusion
Using its portfolio firm Synthimed Labs, IndiaRF had previously said in September 2023 that it would pay ₹1,650 crore to purchase the active pharmaceutical ingredients, contract research, and manufacturing services business. It completed the transaction and paid off debt holders on March 18.
