US-based PE firm Jacob Ballas invests $10 mn in biotech firm Avesthagen

US-based private equity firm Jacob Ballas Capital is close to buying a minority stake in Bangalore-based biotech firm Avestha Gengraine Technologies, popularly known as Avesthagen, for about $10 mn. Jacob Ballas’ $10 mn investment will be $5 mn in equity and $5 mn in warrants. The deal is being structured at Rs. 1850 per share, and values the company at $124 mn.

Jacob Ballas is an India-focused private equity firm floated by New York Life Investment Management, a wholly-owned subsidiary of New York Life Insurance Company, Singapore-based Excelfin, Indo-Pacific Estates and India’s construction-engineering firm Punj Lloyd.

Avesthagen had recently raised $32 mn from Fidelity Investments and France-based biotech majors BioMerieux and Limagrain and the food giant Danone. The company has also raised $5-7 mn from Indian corporates such as the Godrej, Cipla, the Tata Group, and ICICI Ventures. ICICI Ventures and Fidelity hold 19% and 10% stake, respectively, in the company while other strategic investors hold 4-6% stake.

Avesthagen is into biopharmaceuticals, bio-nutritionals and bio-agriculture, and also has a portfolio of heath foods, including biscuits and breakfast cereals. Jacob Ballas’ fund infusion will be used for the company’s proposed acquisitions and patent filings. Avesthagen is in the process of acquiring two domestic seed companies to deploy technology that it has developed in the agri-biotechnology business and is in talks with at least five Indian seed companies for possible acquisitions. The capital expansion is also being done to set up manufacturing facilities to upscale production, before moving into phase two of research and development.

Read The Economic Times article.
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Avesthagen sells 20% stake for €25 mn

Avesthagen sells 20% stake for €25 mn

Bangalore-based integrated life sciences company Avestha Gengraine Technologies Limited (Avesthagen) has closed Series C of private equity fundraising of around €25 mn by divesting 20% equity to external investors. The investment values the company at € 115 mn (Rs. 667 crores). The investors in the company are Fidelity International (10%), the Limagrain Group of France (5%), Daninvest of the Danone Group (4.57%), and Bennett, Coleman & Company Limited (2.4%). The total foreign investment in the company is now over 31%. The existing investors of Avesthagen include ICICI Ventures, Cipla, Godrej Industries, Tata Industries and bioMerieux. The company has also commenced preparations for its initial public offering scheduled to hit the market by mid-2008.

The company commenced its operations as an agri-biotech company in 2001 and then moved on to become a healthcare technology company, pursing its vision of convergence of food, pharmaceuticals, and population genetics, leading to preventive personalized medicine. The other activity of the company has been agri-biotech product development of scientifically validated bioactive nutraceuticals, derived from Indian medicinal plants, as well as the development of bio-similar drugs. The company has four strategic business units: bio-pharmaceuticals, food for medicine (bio-nutritionals), seed for food (agri-biotech) and science and innovation. The company registered Rs. 1.1 crore in profit and Rs. 18 crore revenue in 2005-06.

The funds will be used for Avesthagen’s infrastructure expansion plans, including setting up of manufacturing units and research and development laboratories, and acquisition of technology companies to scale up production and marketing.

Read the article in Business Standard.