Quadria Capital leads four to five private equity firms assessing a controlling 80-85% stake in Samarth Lifesciences, a Mumbai-based maker of critical care drugs, in a transaction that could value the company at Rs 4,500 crore. Promoters plan to retain 15-20% ownership while raising fresh capital for factory expansions and domestic growth. Investment bank O3 Capital advises the sellers as negotiations advance after prior talks collapsed over price disputes.
Revival Draws Investor Scrutiny
Samarth Lifesciences, founded in 1963 by Gunwantlal Shah, operated quietly for decades before accelerating growth over the past ten years. The company now offers therapies in critical care, cardiac, anti-infectives, urology, oncology, and gynaecology. Sales reached Rs 727 crore with a 16% compound annual growth rate, surpassing the industry's 10-12% pace, per PharmaTrac data. This outperformance has sparked private equity interest, though earlier suitors like EQT, TPG, KKR, and Warburg Pincus withdrew due to valuation gaps.
High Margins in Injectables Fuel Premium Ask
Samarth commands respect in injectables and sterile products, a niche with fewer competitors and superior margins. Top brands include Caprin, an anticoagulant injection preventing blood clots, which generated Rs 74 crore in moving annual turnover sales for March 2026 with a 27% five-year CAGR. Poly B, a hospital anti-infective, posted Rs 38 crore, while Mucomix, a respiratory treatment for COPD and bronchitis, added Rs 34 crore. Promoters seek nearly 30 times FY26 EBITDA of Rs 160-170 crore, a multiple buyers view as elevated.
Expansion Plans and Global Reach Signal Next Phase
The stake sale aims to fund new factories and bolster domestic presence, building on exports to the UK, South America, Southeast Asia, and Africa. Such investments could strengthen Samarth's position in high-barrier segments amid rising demand for critical therapies. Private equity entry often accelerates scaling for firms like this, though success hinges on aligning growth projections with investor valuations. Neither Samarth nor Quadria responded to queries.
