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PE major CVC Capital Partners in talks to pick up minority stake in Shilpa Medicare’s API business

CVC’s India portfolio includes Bengaluru-based HealthCare Global Enterprises, the country’s largest cancer care provider, and UnitedLex, a legal services outsourcing firm. Earlier on July 12, Shilpa Medicare had approved the transfer of its API business to a wholly owned subsidiary via a slump sale.

August 12, 2021 / 21:30 IST
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APIs are the raw materials that give drugs the intended therapeutic effect.

Global private equity giant CVC Capital Partners has entered exclusive negotiations to pick up a significant minority stake in the active pharmaceutical ingredients (API) business of Hyderabad-based drug maker Shilpa Medicare, multiple industry sources with knowledge of the matter told Moneycontrol.

If talks between both parties fructify into an eventual transaction, this would be the Luxembourg-based private equity firm’s debut investment in India’s pharma sector, which has seen a sharp surge in the appetite for API targets over the last 18 months.

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“CVC Capital Partners has held exclusive talks to pick up a 30 percent stake in the API business of Shilpa Medicare which had recently approved the transfer of the cash cow vertical to a separate arm,” one of the persons cited above told Moneycontrol.

Two other persons confirmed the discussions between both the parties.