MO Alternate Investment Advisors will invest ₹460 crore for a majority stake in Megafine Pharma. The Sanghvi Family, one of the founding-promoter groups, has also participated in this transaction, increasing their stake in the company.

Mumbai-based, export-focused Active Pharmaceutical Ingredients (APIs) company with two USFDA-approved manufacturing facilities in Nashik and Vapi, Megafine specialises in the manufacture and sale of a diverse range of high-value, low-volume niche APIs for chronic therapies.

Established in 1995, Megafine is backward integrated to manufacture its own intermediates while also offering contract manufacturing services for APIs and Intermediates to third-party customers.

Shailesh Sanghvi, Managing Director, Megafine Pharma, said with the company’s manufacturing facilities approved by all major global regulatory authorities, the company looks forward to partner with the MO Alts’ team to embark on the next stage of growth.

Double-digit growth

Rohit Mantri, Managing Director and Co-Head of Private Equity, MO Alts, said the country’s API industry is witnessing a double-digit growth, driven by increased outsourcing, lower costs and de-risking of global supply chains from China.

This is the first sole control investment as MO Alts and would focus on further strengthening manufacturing capabilities and creating a platform for further inorganic opportunities, he added.

Megafine and its shareholders were advised by Deloitte (financial advisor), JSA (legal) & Pioneer (legal) on the Transaction. Quillon Partners (legal), Alvarez and Marshall (financial), PWC (tax) & MP Advisors (commercial) advised MO Alts.