Vivimed Labs Raises INR 127 Crore from Reputed Private Equity Investors

• NYLIM JB Fund invested INR 67 crores
• Kitara Capital invested INR 60 crores
• The fund raising will finance Vivimed’s ongoing expansion plans

Online PR News – 29-September-2011 – – Hyderabad, September 27, 2011. Vivimed Labs Limited (“Vivimed”), one of the leading chemical and pharmaceutical manufacturing companies based at Hyderabad, has announced today the completion of an INR 127 crore ($27.6 million) fund raising through a preferential allotment to two reputed private equity investors: NYLIM Jacob Ballas India Fund III LLC (“NYLIM JB Fund”) and Kitara Capital. NYLIM JB Fund invested INR 67 crore to subscribe for compulsorily convertible preference shares (“CCPS”) which will be converted within a period of 18 months at a price of INR 315/- per share, for a 13.2% shareholding in Vivimed on a fully diluted basis. Kitara invested INR 60 crores to subscribe for equity shares at a price of INR 327/- per share, for a 11.4% shareholding in Vivimed on a fully diluted basis. The fund raising will finance Vivimed’s ongoing expansion plans for Speciality Chemicals at its existing locations in Bidar (Karnataka), Hyderabad, a green field project (SEZ) off Vizag at Pydibhimavaram, a USFDA compliant facility for Pharmaceuticals at Choutuppal near Hyderabad.

Commenting on the fund raise Mr. Santosh Varalwar, Managing Director and CEO of Vivimed said “it indeed was need of the hour to ensure funding of all the Vivimed Labs’ aggressive growth plans and will help the company catapult to new levels of performance”.

Mr. Srinivas Chidambaram, Managing Director and CEO, Jacob Ballas Capital India Pvt Ltd (“JBC”), investment advisor to NYLIM-JB Fund, said “Vivimed is a unique player positioned at the confluence of Specialty Chemicals and Pharmaceuticals and is poised for strong growth in India and overseas. The transnational team led by Santosh Varalwar has ambitious growth plans and NYLIM-JB Fund is proud to be a long term financial partner to help realize their vision”. A nominee of NYLIM JB Fund will join Vivimed’s Board of Directors in due course.

Mr Sachin Kamath, Founder and CEO of Kitara Capital said “Vivimed is a globally competitive Specialty Chemical manufacturing company supplying to some of the top Fortune 100 Companies. Management’s successful track record of earlier acquisitions abroad and the current inorganic strategy gives us an unique opportunity to take part in its changing business model with leverage of back ended manufacturing in India and corresponding margin arbitrage in the overseas market. The vision, leadership and the past track record of Mr. Santosh Varalwar gives us the added confidence that Vivimed will emerge as a top player in its space in next two years. Kitara Capital is happy to be associated with Vivimed as its long term financial partner."

Veda Corporate Advisors, Chennai, acted as advisor to Vivimed on this transaction. Veda Corporate Advisors Pvt Ltd provides advisory services to mid market companies in private equity fund raising and mergers and acquisitions. In last seven years they closed deals aggregating USD 1.20 billion.

About Vivimed Labs Limited
Vivimed Labs Ltd, a twenty year old Hyderabad based company engaged in manufacture and export of Specialty Chemicals, Pharmaceuticals has five manufacturing plants in India. It has wholly owned subsidiaries abroad – Vivimed Labs Europe Ltd, UK and Vivimed Labs USA Inc in USA to ensure global reach for its expanding range of personal and health care products. Its unique portfolio of products are in pharmaceuticals, skin care, hair care, sun care, oral care, anti microbials segments.
Vivimed’s consolidated turnover for FY 2010-11 was Rs.416.00 crs with PAT of Rs. 48.83 crs recording a growth of 21 % in sales, 57 % in net profit.
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About NYLIM-JB Fund
NYLIM Jacob Ballas India Fund III, LLC (“NYLIM JB Fund”) is a Mauritius-based fund with an investment objective of achieving long-term capital appreciation through equity or equity-related investments into companies based in or with significant operations in India. NYLIM JB Fund and its affiliates (the “Funds”) have made over 20 investments in India in a diverse range of sectors including manufacturing, infrastructure and services. The Funds’ prior investments include leading companies such as Bharti Airtel, Punj Lloyd, Pipavav Shipyard, Bhilwara Energy, Aster, Mahindra Holidays & Resorts, Inventia Healthcare, Financial Software and Systems and SEW Infrastructure.

About Jacob Ballas Capital India Pvt Ltd
Jacob Ballas Capital India Pvt. Ltd (“JBC”), based in New Delhi, is the investment advisor to three India focused private equity funds, New York Life International India Fund (Mauritius), LLC, New York Life Investment Management India Fund II LLC and NYLIM Jacob Ballas India Fund III, LLC. JBC’s ten member investment team has over 150 years of collective operating and investing experience, with over 50 years focused on private equity investments in India.
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About Kitara Capital
Head quartered in Middle east, with offices in India, Dubai, Hong Kong and Muscat, Kitara Capital is a boutique investment platform where successful entrepreneurs and business families come together to partner in providing capital to opportunities in listed and unlisted companies across geographies.