Quadria, PE funds eye stake in Samarth Lifesciences; deal may value firm at Rs 4,500 crore
Mumbai: Quadria Capital is among 4-5 private equity investors evaluating a potential acquisition of a controlling 80-85% stake in Samarth Lifesciences, said people familiar with the matter. A deal could value the manufacturer of critical care drugs at around Rs 4,500 crore, they said.
Promoters of the Mumbai-based company are expected to retain a 15-20% stake after the transaction, the people said. Investment bank O3 Capital is advising the promoters on the proposed deal.
Global investors including EQT, TPG, KKR, and Warburg Pincus earlier exited the stake sale negotiations due to differences over valuation. Samarth wants to raise fresh capital to support the next phase of growth, including investments in new factories and to expand its domestic presence, the people said.
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Founded in 1963 by Gunwantlal Shah, the company has built a diversified portfolio spanning critical care, cardiac, anti-infectives, urology, oncology, and gynaecology therapies.
Samarth remained largely low-key for much of its existence but has seen a marked improvement in performance over the past decade, attracting interest from PE firms. However, previous discussions didn't culminate in a deal due to the valuation differences.
The promoters are seeking a valuation multiple of nearly 30 times, which prospective investors are finding steep, the people said. Samarth reported Rs 160-170 crore in earnings before interest, tax, depreciation, and amortisation (Ebitda) in FY26. Samarth Pharma and Quadria Capital didn't respond to email queries.
Samarth recorded sales of Rs 727 crore, growing at 16% compounded annually, outpacing the industry growth rate of 10-12%, according to market tracker PharmaTrac. Among its leading brands are Caprin, an anticoagulant therapeutic injection used to prevent blood clots, which posted sales of Rs 74 crore in March 2026 on a moving annual turnover (MAT) basis, with a five-year compound annual growth rate (CAGR) of 27%; Poly B, a potent anti-infective used in hospitals, with sales of Rs 38 crore; and respiratory product Mucomix, used in COPD and bronchitis, with sales of Rs34 crore. People said Samarth has built a strong reputation in the injectables and sterile segment, which has relatively fewer companies and offers high margins.
The company has also expanded into overseas markets including the UK, South America, Southeast Asia, and Africa.
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Differences over Valuation
Investment bank O3 Capital is advising the promoters of the Mumbai-based company on the proposed deal.
Global investors including EQT, TPG, KKR, and Warburg Pincus earlier exited the stake sale negotiations due to differences over valuation. Samarth wants to raise fresh capital to support the next phase of growth, including investments in new factories and to expand its domestic presence, the people said.
Founded in 1963 by Gunwantlal Shah, the company has built a diversified portfolio spanning critical care, cardiac, anti-infectives, urology, oncology, and gynaecology therapies.
Samarth remained largely low-key for much of its existence but has seen a marked improvement in performance over the past decade, attracting interest from PE firms. However, previous discussions didn't culminate in a deal due to the valuation differences.
The promoters are seeking a valuation multiple of nearly 30 times, which prospective investors are finding steep, the people said. Samarth reported Rs 160-170 crore in earnings before interest, tax, depreciation, and amortisation (Ebitda) in FY26. Samarth Pharma and Quadria Capital didn't respond to email queries.
Samarth recorded sales of Rs 727 crore, growing at 16% compounded annually, outpacing the industry growth rate of 10-12%, according to market tracker PharmaTrac.
Among its leading brands are Caprin, an anticoagulant therapeutic injection used to prevent blood clots, which posted sales of Rs 74 crore in March 2026 on a moving annual turnover (MAT) basis, with a five-year compound annual growth rate (CAGR) of 27%; Poly B, a potent anti-infective used in hospitals, with sales of Rs 38 crore; and respiratory product Mucomix, used in COPD and bronchitis, with sales of Rs 34 crore.
People said Samarth has built a strong reputation in the injectables and sterile segment, which has relatively fewer companies and offers high margins.
The company has also expanded into overseas markets including the UK, South America, Southeast Asia, and Africa.
Strong PE Interest
Healthcare-focused Quadria manages more than $4.2 billion in assets across 29 investments in South and Southeast Asia.
In India, the PE firm holds about a 15% stake in Encube Ethicals, which specialises in topical formulations, and has a strong portfolio of creams, gels, and ointments across dermatology and reproductive healthcare.
A proposed stake sale by the promoters of Encube Ethicals and Quadria failed due to a valuation mismatch, ET reported last month.
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