Sudeep Pharma's Rs 800-Crore Debt Talks with Avendus

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The owner of Sudeep Pharma is in talks with Avendus Capital to secure ₹800 crore in debt to buy out its joint venture partner, German manufacturer JRS Pharma, and take full ownership of the pharmaceutical company.

"Sudeep Pharma is looking to buy out the share of another shareholder, and for this, they are looking to borrow around ₹800 crore," said a person close to the development. "They want to buy out 50% of its JV partner JRS Pharma."

The Indian owner of Sudeep Pharma is Sujit Jaysukh Bhayani, its MD and CEO, and his family.Spokespersons of both Sudeep Pharma and Avendus declined to respond to requests for comments.

Avendus is in the process of arranging the debt.

"Avendus is working to stitch up the transaction together and is looking for partners," a second person said.

The term of the loan is getting worked out and is likely to close in a couple of months, the sources said.

Sudeep Pharma is into making mineral-based ingredients for India's pharmaceutical and food industries. It has a JV with the German manufacturer of excipients and coatings, JRS Pharma. It has several manufacturing facilities in Gujarat and has been doing business in 50 countries for 30 years.

In a similar deal last year, Avendus had advised Shiva Group and helped raise transaction finance to acquire a majority stake in Ineos Styrolution.

According to EY's Private Credit report, investors are likely to pump in $5-10 billion in private credit deals this year, with new funds being raised and fund managers bullish on real estate and manufacturing sectors.