InvAscent bets on Mumbai drugmaker Sunways in third deal of 2022

Healthcare-focused private equity firm InvAscent has struck its third new deal this year by investing $15 million (Rs 123 crore) in Mumbai-based pharmaceutical company Sunways India Pvt Ltd.

InvAscent invested in the company via its India Life Sciences Fund III (ILSF III) and picked up a minority stake.

Sunways said it plans to use the money to expand its international operations, look for inorganic expansion and add capacity.

“Sunways is well established to progress into the next phase of sprinted growth domestically and in the international markets. This growth would be supported by organic and inorganic expansion,” Bhadresh Shroff, Chairman of Sunways, said.

Founded seven decades ago by Kantilal Shroff, Sunways manufactures ophthalmic and ENT-focused products, oral medication and sterile preparations including pharmaceutical formulations, injections, and eye drops.

“Sunways has built its domestic presence and scale over time and remains one of the top 10 pharmaceutical companies under the ophthalmology category. It is poised to benefit from the new facility expansion and geographic footprint. India Life Sciences Fund III looks forward to partner with the founders; built on the strong ethos of quality, market reach and differentiated products,” InvAscent’s managing director Sumit Gupta said.

Orbit Financial Capital was the financial adviser to Sunways for the transaction.

Earlier this year, InvAscent backed Chennai-based Malladi Drugs. Soon after, it struck a club deal along with Creador to invest in medical equipment maker Accumax.

The PE firm’s first fund had made eight investments and has exited them all. Its second fund backed a dozen firms while the current fund that began investing in November 2018 has invested in around 11 firms including Sunways.