Piramal-Bain sponsored fund set to acquire ICICI Ventures-backed specialty chemicals maker for $125 million

ICICI Ventures invested Rs 120 crore in the company in 2016 to acquire a significant minority stake in Anthea.

Piramal group and Bain Capital sponsored India Resurgence Fund (IndiaRF) is set to acquire a controlling stake in ICICI Ventures-backed specialty chemicals maker Anthea Aromatics for $125 million, sources have told Moneycontrol.

ICICI Ventures is selling its entire minority stake in Anthea, while promoters will continue to have a small holding, the sources said. IndiaRF, which is a special situations fund, will infuse fresh capital in the company to turn around its operations. An announcement is expected soon, the sources added.

Moneycontrol first reported on May 9 about IndiaRF’s interest in Anthea.

Emails sent to Anthea Aromatics, ICICI Ventures and IndiaRF did not elicit a response.

Anthea manufactures chemical intermediaries used in flavours and fragrances and has an in-house research and development centre in Rabale, Navi Mumbai.

Anthea was founded in 1992 by Dr Vincent Paul who did post-doctoral stints in Columbia and Johns Hopkins universities before returning to India to join the Hindustan Unilever research centre in Mumbai.

ICICI Ventures invested Rs 120 crore in the company in 2016 to acquire a significant minority stake. It holds around 25-30 percent in the company, the sources said.

Anthea reported an operating revenue of Rs 58 crore and a profit of Rs 8.5 crore for the first nine months of FY23, according to a Care Ratings report. In FY22, its revenue came in at Rs 84.21 crore and a loss of Rs 52.4 crore.

The company has struggled with its new manufacturing capacities it set up in Karnataka in 2021, which has been a major drag, the sources said.

IndiaRF's investments

IndiaRF's strategy targets investments across sectors, from industrial, infrastructure to consumer, where a turnaround can be scripted through recapitalisation and operational changes.

IndiaRF raised its first fund of $629 million with two main investors — Canada Pension Plan Investment Board (CPPIB) and World Bank arm IFC. CPPIB committed $225 million, while IFC invested $100 million. The fund is co-sponsored by the Piramal Group and Bain Capital Credit.

In 2023, the fund announced two major deals, acquiring the active pharmaceutical ingredients and CRAMS business of Ind-Swift Laboratories for Rs 1,650 crore and the acquisition of a controlling stake in Punjab-based Ivy Hospitals chain for Rs 525 crore.

IndiaRF also acquired a majority stake in Impresario Entertainment, which runs the popular chain of pubs under the brand Social in 2022 for Rs 550 crore.