Global private equity firms eye $1 billion bid for Bharat Serums and vaccines

Five global private equity firms - Warburg Pincus, Permira, EQT, Bain and TPG - have conveyed their interest to join the bidding process for Bharat Serums and Vaccines (BSV), which has been put on the block by its existing owners, who are seeking over $1 billion for the company, according to sources close to the development.

The private equity (PE) firms will sign expressions of interest papers in two weeks, after which they will formally start due diligence on the company, though they have already done some spadework, according to the people.

The Mumbai-headquartered biopharmaceuticals company was acquired by US-based investor Advent International from its previous owners, the Daftary family, for an undisclosed sum in 2019. Advent, which is now the 100%-owner of BSV, wants to sell the company.


At least one of the five contenders may rope in a pharmaceutical company as a partner for its bid, the sources said. Baring Private Equity Asia, which has now folded into EQT, and Bain Capital, had independently evaluated a purchase of BSV in the past. EQT and Bain may have a competitive advantage in the bid process, as per the sources.

Advent declined to comment when contacted. Bain Capital, EQT, TPG, Warburg Pincus and Permira declined to comment.

Advent has engaged investment banks Jefferies and JP Morgan to advise on the sale process.

In the past, pharmaceutical companies such as Mylan (now known as Viatris), Cadila Health and Mankind Pharma have been named as possible suitors for BSV when the Daftary's were looking to exit the company and before Advent acquired it.

Bharat Daftary, who was at the helm at BSV before Advent took it over, passed away in December.

BSV has developed a reputation as a specialised player in the women's health segment, with a range of hormones used to stimulate reproductive capacity and for assisted reproduction such as through in vitro fertilization or IVF-based procedures. It also has a portfolio of antibodies for administration to patients who may be immunocompromised due to ailments such as cancer. Its product range includes drugs for life threatening fungal infections.

BSV was incorporated in 1971. It has two manufacturing facilities at Ambernath and Thane and a research and development unit in Navi Mumbai. The company also owns a horse farm in Hyderabad. It has four wholly owned subsidiaries in the US, Germany, the Philippines, and India.

The German facility has active pharmaceutical ingredient manufacturing capabilities and is approved by the US Food and Drug Administration and the European Union.

BSV had sales of ₹1,435 crore in FY23 as per a note from credit rating agency Icra.

"The company's consolidated revenues grew by 15% in FY2023 to ₹1,435.4 crore (provisional) on the back of significant traction in the women's health and assisted reproductive segments," Icra had said in a September 11 note.

However, though it rated the company's creditworthiness at A+, it noted that it faces certain restrictions on its ability to price products.

"The operations remain exposed to regulatory restrictions in terms of pricing caps in the domestic market, stringent quality norms and product/facility approvals in export destinations," Icra noted.