Granules India surges 10% as three PE firms look to pick controlling stake

Shares of Granules India advanced nearly 10 per cent in Friday’s trade after a report said that global private equity firms Blackstone, KKR and Bain Capital have expressed interest in acquiring a controlling stake in the pharma company.

The scrip jumped as much as 9.53 per cent to a fresh 52-week high of Rs 395, while the benchmark BSE Sensex traded 0.96 per cent higher at 36,887.

A report by Moneycontrol said that Blackstone, KKR and Bain Capital have submitted non-binding bids for the proposed transaction and investment bank Kotak Mahindra Capital has been engaged by the promoters of Granules India to look for buyers.


Granules is a vertically integrated pharmaceutical company, headquartered in Hyderabad. The company manufactures Active Pharmaceutical Ingredients (APIs), Pharmaceutical Formulation Intermediates (PFIs) and Finished Dosages (FDs) and supplies them to both regulated and semi-regulated markets.

Exports constitute around 80 per cent of revenues. The regulated markets constitute around 66 per cent of revenues, while LATAM accounts for 10 per cent of revenues.

Brokerage firm Sharekhan in a report on September 17 said, "Granules is a fully integrated pharmaceutical company with presence across the API-PFI-FD value chain. It is witnessing improved demand environment across its products. The core 5 molecules, which account for 85 per cent of the sales are likely to sustain the strong growth trajectory, as the company plans to tap new geographies of Europe, Canada and South Africa for growth."

A strong product pipeline would add to the revenue growth, the brokerage said.