Home Brand News IndiaRF Announces USD 144 million Investment in Panacea Biotec Ltd.

IndiaRF Announces USD 144 million Investment in Panacea Biotec Ltd.


India Resurgence Fund (“IndiaRF”), promoted by Piramal Enterprises
Limited and Bain Capital Credit, along with its affiliates today announced an investment of up to INR
992 crores/ USD 144 million in New Delhi based Panacea Biotec Limited (“Company”). The investment
proceeds will be used for a one-time settlement with existing lenders, general working capital and
growth requirements of the Company.
This investment is structured by way of Non-Convertible Debentures (NCDs) of up to INR 864 crores
and subscription amount of INR 32 crores towards share warrants to be allotted on a preferential
basis. The subscription amount represents 25% of total amount of INR 128 crores proposed to be
raised upon issuance of equity shares against warrants as per SEBI (Issue of Capital and Disclosure
Requirements) Regulations, 2018. Subject to exercise of warrants, IndiaRF (along with its affiliates)
will collectively end up owning 10.4% stake in the company on a fully diluted basis.
Commenting on the investment, Shantanu Nalavadi, Managing Director, IndiaRF said, “We are
pleased to partner with Panacea Biotec, as it embarks on an exciting journey to enhance its market
position as a strong, research-focused pharmaceutical and biotechnology company. The purpose of
this investment is to not only restructure the Company’s balance sheet, but more importantly, work
closely with the promoters and management team, to drive rapid revenue growth and sustainable
profitability improvement. IndiaRF continues to remain focused on providing long term strategic
solutions that enable an effective turnaround for high quality companies that have the potential for
accelerated growth and profitability.”
Dr. Rajesh Jain, Managing Director, Panacea Biotec said, “We are delighted to partner with IndiaRF
at this critical juncture in Panacea Biotec’s journey. We look forward to leveraging their proven global
expertise in restructuring and turnarounds, and are certain that our combined efforts will now help
accelerate our ambitious growth and profitability targets.”
Panacea Biotec is a progressive, innovative, research & development-focused biotechnology company
focused on manufacturing and marketing of pharmaceutical formulations, biopharmaceuticals and
Brescon & Allied Partners LLP were the exclusive advisors to the Company on thistransaction, advising
on the one time settlement with the banks and raising funding to back the revival plan.


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