Avesthagen to raise USD100mn for expansion

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Avestha Gengraine Technologies (Avesthagen), a Bangalore-based biotech firm, has outlined plans to raise USD 100 million (Rs 410 crore) to fund its growth and acquisition plans for the next three years. The amount will be raised through a mix of private equity and an initial public offering (IPO). 
 
Avesthagen, which focuses on the convergence of food, pharmaceuticals and clinical genomics, provides solutions to agriculture and health problems such as degenerative conditions, metabolic disorders and infectious diseases. 
 
Confirming the fund-raising plan, Villoo Morawala Patell, founder of Avesthagen, said the company was preparing the ground for an IPO. A private equity (PE) deal was also in the offing, she said, adding that the PE fund was for financing the firm's global acquisitions. 
 
According to sources, Avesthangen is preparing for a Rs 250-crore public offer next year. Patell, not willing to comment specifically on the amount, said that it might be a larger offer. The company recently acquired a US-based firm for around USD 11 million. 
 
Industry sources indicated that Avesthagen was in advanced stages of raising $30 million through the private equity route. "The company has been holding discussions with various PE funds, including ICICI Ventures, which is one of the early investors in the company," industry sources said. 
 
Avesthagen has been raising funds for several of its projects from investors such as Daninvest of Danone and New York Life Management. Recently, the company raised Rs 22.5 crore from New York Life Investment Management India Fund. 
 
Avesthagen's clients and other investors include companies such as bioMerieux, Cipla, Godrej Industries, Nestle, Groupe Limagrain, Tata Industries and Fidelity. 
 
Leveraging its R&D capabilities, Avesthagen expects to launch some of its products for the bio-pharma and the bio-nutritional markets in 2008. The company is also planning to ramp up its employee strength from close to 300 to over 600 within the next 12 months. 
 
According to industry analysts, Avesthagen has the potential to develop a valuable IP (intellectual property) portfolio, which can be leveraged globally in bio-pharma, bio-nutritional and bio-agriculture sectors. 
 
Avesthagen has four strategic business units - biopharmaceuticals, food for medicine (bio-nutritionals), seed for food (agribiotech) and science innovation, reports Business Standard.