@KitaraCapital is hiking its stake in manufacturer and exporter of specialty chemicals and pharmaceuticals @Vivimed Limited by way of subscription to 5 lac warrants of the company at an unit prices of INR 315.
The company is also issuing convertible warrants to the promoters which will enable the firm to get INR 472.5 Mn.
Kitara currently holds 11.29% and if exercised the stake would rise to 12.8% ( stake incase the warrants are exercised by promoters as well as Kitara).
Vivimed Labs Ltd had raised INR 1270 Mn in 2011 through preferential allotment of shares to NYLIM Jacob Ballas (JB) India Fund and Kitara Capital.
Kitara Capital invested INR 600 Mn to subscribe to equity shares at INR 327 a share while JB Fund invested INR 670 Mn subscribing to CCPS at a unit price of INR 315. JB Fund is currently the largest shareholder with 13.13% stake.
Founded by V. Manohar Rao , Vivimed is an organisation with a unique portfolio of products, focused on Pharma, Personal Care and Colour Chemistry. Vivimed has offices in India, China, Europe and USA, with manufacturing facilities focused around Hyderabad city in India. The company is now set to expand its operations into the fast-emerging and highly demanding sector of Printable Electronics and Organic Semiconductors.
Last year it had acquired Actavis Pharma Manufacturing Pvt. Ltd's solid oral dosage facility in Alathur, Tamil Nadu, India for a consideration of INR1,220 Mn. It had also acquired Finoso Pharma Pvt. Ltd for INR 150 Mn in a debt free transaction by issuance of 1,42,857 shares at a price of INR350 per piece and the balance INR 100 Mn in the form of cash or equivalents.
The company has a market cap of close to INR 5 Bn and had recorded a turnover of INR 4,335 Mn with a PAT of INR 266.29 Mn for the last fiscal.
Kitara Capital is owned by the Halcyon Capital Holding Co. SAOC head-quarted in Oman.The Fund invests over a time horizon off 3-5 years during recessions, either through PIPE in illiquid instruments or Private Equity. The Fund invests in Medium-sized businesses across various sectors and geographies. Its portfolios include APL Apollo Tubes Limited, Innoventive Industries Limited, Tecpro Systems Limited, Oil Field Instrumentation (India) Private Limited to name a few.