India Digest: ChrysCapital looking to back two healthcare firms; Govt reviews Chinese FDI in Paytm

India Digest: ChrysCapital looking to back two healthcare firms; Govt reviews Chinese FDI in Paytm

Photo by Andrea Natali on Unsplash

Homegrown private equity firm ChrysCapital is reportedly in talks to pick up a 5-6% stake in pharmaceutical company La Renon Healthcare. It is also said to be partnering Ontario Teachers Pension Plan to buy Healthium Medtech. Separately, the Indian government is said to be examining the FDI that has flown into Paytm Payments Services Ltd.

ChrysCapital eyes investment in La Renon Healthcare

ChrysCapital, which is currently on the road to raise $2-2.2 billion for its tenth fund, is reportedly in talks to pick up a 5-6% stake in pharmaceutical company La Renon Healthcare, The Economic Times reported, quoting sources.

The deal, which is slated to witness a secondary sale of shares, will peg the valuation of the company at Rs 6,500 crore ($800 million), the report further stated.

La Renon Healthcare’s journey began in 2007 with the chronic therapeutic segment of nephrology. According to information available on its website, the company serves the highest number of chronic kidney Disease (CKD) patients in India today.

Early angel investors are reportedly looking to exit the company via this transaction. La Renon Healthcare also counts Peak XV and A91 Partners among its backers.

OTPP, ChrysCapital may team up to acquire Healthium Medtech

Ontario Teachers Pension Plan (OTPP), one of the world’s largest pension funds that backs both companies and funds, is said to be teaming up with Chrys Capital to buy Healthium Medtech, a report by MoneyControl stated.

Established in 1992, Healthium Medtech manufactures surgical sutures globally. Its portfolio includes products used in segments such as advanced surgery, advanced wound care, arthroscopy, and infection prevention.

The deal size is likely to be over Rs 6,000 crore, which is close to a three-fold jump in terms of valuation from the price Apax Partners paid while acquiring the company in 2018 from PE giant TPG Capital.

Other PE investors are also said to be in the fray. These include names such as Blackstone, Bain Capital, and the Carlyle Group, stated the report.

Chinese FDI in Paytm under govt lens

Days after the central bank in India prohibited Paytm Payments Bank from receiving deposits in both its accounts and digital wallets due to persistent non-compliance and supervisory concerns, the startup is once again back in the purview of the government.

According to a report by PTI, the government is now examining the foreign direct investment that has flown into Paytm Payments Services Ltd (PPSL), the payment aggregator subsidiary of One97 Communications Ltd.

The parent firm of PPSL has investment from Chinese major Ant Group Co.

A decision is pending and will be out after due consideration and comprehensive examination, the report stated, citing sources.

Edited by: Joymitra Rai

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