India Resurgence Fund (IndiaRF), a fund promoted by Piramal Enterprises and Bain Capital Credit, has invested ₹992 crore ($144 million) in New Delhi-based pharmaceutical and biotechnology firm Panacea Biotec. The company will use the proceeds for a one-time settlement with existing lenders, general working capital and growth requirements.
The investment is structured by way of non-convertible debentures (NCDs) of up to ₹864 crore and subscription amount of ₹32 crore towards share warrants to be allotted on a preferential basis. The subscription amount represents 25 per cent of the ₹128 crore proposed to be raised upon issuance of equity shares against warrants, the company said in a statement.
Subject to exercise of warrants, IndiaRF (and its affiliates) will own a 10.4 per cent stake in Panacea Biotec.
Brescon & Allied Partners LLP was the advisor to the company.
IndiaRF, which invests in both debt and equity in distress situations, focusses on all sectors other than real estate. Panacea Biotec’s portfolio includes products in therapeutic areas of oncology, organ transplantation, nephrology, diabetes, osteoporosis, cardiovascular diseases and paediatric vaccines.