Tata Capital Healthcare Fund to exit Linux Laboratories as ChrysCapital buys 20-25% stake

Mumbai: Homegrown private equity firm ChrysCapital is set to acquire a 20-25% stake in central nervous system (CNS)- focused domestic formulations company Linux Laboratories for around $60-65 million (₹600 crore), people aware of the development told ET. Tata Capital Healthcare Fund, an existing investor in Chennai-based Linux Laboratories, will exit its entire 15% stake as part of the transaction, while ChrysCapital will acquire an additional 5-10% stake through a primary capital infusion.

Presently, founders Keerthivasan K, Ananda Kumar Sundharam and Hariharan Parameswaran together hold 84.68%. Tata Capital Healthcare Fund II holds a 15.32%, Tracxn data showed. Tata Capital Healthcare Fund invested ₹80 crore in Linux in 2021.

Also read: Pharma sector must attract more investment in clinical trials, R&D: Piyush Goyal


Founded in 2007, Linux has a portfolio of more than 64 brands across around 180 products, spanning therapeutic segments such as neurology, psychiatry and cosmetic dermatology.

Linux Laboratories is expected to post a revenue of ₹450-500 crore and an Ebitda of ₹85-90 crore in FY27, said sources.

Mails sent to Linux Laboratories and ChrysCapital remained unanswered until the publication of this report, while a Tata Capital spokesperson declined to comment. Private equity interest in India's pharmaceutical formulations sector has remained strong, particularly in domestic branded-generics businesses with established brands and exposure to chronic and specialtiy therapies.

In 2024, ChrysCapital invested about $70 million in La Renon Healthcare at a valuation of around $800 million, while the firm has also backed companies such as Mankind Pharma, Eris Lifesciences, Torrent Pharmaceuticals and Ipca Laboratories.

Kunal Shroff, managing partner at ChrysCapital, believes that geopolitical issues have a relatively limited impact on ChrysCapital's portfolios. In the pharma segment, most of the portfolio companies are domestically focused, and they continue to grow with strong margins and healthy returns on equity, he told ET last year. In July, ChrysCapital had acquired a controlling 70.68% stake in Novartis India (NIL), with major brands such as Voveran, Calcium Sandoz and Tegretol.

Since its inception in 1999, ChrysCapital has cumulatively raised close to $8.5 billion across 10 PE funds, a continuation vehicle, and its public markets fund. Through its PE funds, it has deployed over $5.5 billion in more than 110 portfolio companies.

Also read: Sun Pharma gets ratings boost from Moody's, S&P over USD 11.75-bn Organon & Co acquisition bid

The Indian pharmaceutical industry ranks 3rd globally by volume and 11th by value. The domestic pharmaceutical market, valued at $60 billion, is projected to reach $130 billion by 2030, according to the Government of India. India is the largest global supplier of generic medicines, accounting for around 20% of global supply, manufacturing 60,000 generic brands across 60 therapeutic categories.