Mid-market private equity firm Lighthouse Advisors India Pvt. Ltd has invested in a publicly listed healthcare company, marking its first bet this year, a person directly privy to the development told VCCircle.
Lighthouse has picked up nearly two per cent stake in Faridabad-based medical devices manufacturer Poly Medicure Ltd, the individual mentioned above said.
The PE firm, which operates as Lighthouse Funds, is said to have invested Rs 90-100 crore ($12.3-13.6 million).
Poly Medicure, launched in 1995, offers devices for verticals such as oncology, urology, anaesthesia, respiratory care, surgery and dialysis. It operates eight manufacturing facilities including five in India.
The company had posted consolidated net sales of Rs 687.2 crore for 2019-20 as against Rs 610.8 crore a year before.
It has grown at 17% revenue CAGR and 20% Ebitda CAGR in the past 10 years, the person added.
An email query sent to Poly Medicure didn’t elicit any response till the time of publishing this report.
Lighthouse focuses on consumer-centric sectors such as healthcare, food and beverages, personal care, building materials, consumer durables, logistics and financial services.
It is currently investing out of its second and third funds. The third fund hit its final close last year at $250 million.
In October last year, Lighthouse increased its exposure in one of its publicly listed portfolio firms Stylam Industries Ltd.
In December 2018, it made an investment in Delhi-based footwear maker Aqualite Industries Pvt. Ltd for a minority stake.
In 2016, Lighthouse made a PIPE bet (private investment in public equity) on Delhi-based non-banking finance company (NBFC) Capital Trust Ltd.
This was also the company's first deal in the financial services sector. Its other PIPE investments are Cera Sanitaryware Ltd, Dhanuka Agritech Ltd and Shaily Engineering Plastics Ltd.
The PE firm struck two transactions in 2019, partially exiting Bikaji Foods International Ltd via a secondary sale and fully exiting Kama Ayurveda when Spanish fashion and fragrance company Puig SL acquired the Indian company.
Poly Medicure is one of several medical device manufacturers that have raised money in recent times.
In May last year, medical devices startup Sushrut Designs Pvt. Ltd raised capital in its first external funding round from a clutch of angel investors.
In April that year, medical devices maker Consure Medical Pvt. Ltd raised Rs 3.6 crore from Accel and Jayesh Arvind Parekh, a managing partner at Singapore-based Jungle Ventures.
In March, Motilal Oswal Private Equity agreed to invest up to Rs 240 crore (around $32.75 million) in Molbio Diagnostics Pvt. Ltd.
In November 2018, Tulip Diagnostics Pvt. Ltd acquired Mumbai-based Biosense Technologies Pvt. Ltd.
Biosense, which was founded in 2008, produces devices such as a glucometer and a smartphone-based portable diagnostics system.
In April 2018, Pune-based tech business incubator Venture Center said it had made seed-stage investments in two medical devices startups – neonatal care-based Sensivision Health Technologies Pvt. Ltd and cancer screening startup Kozhnosys Pvt. Ltd.
(As published in https://www.vccircle.com/ January 18, 2021 )