The PE firm, which is nearing the final close of its fourth domestic-focused fund, was allocated the largest share—20.5% of the total—of Poly Medicure’s Rs 1,000 crore ($121 million) qualified institutional placement (QIP), according to a stock exchange filing.

Other investors in the QIP include SBI, Nomura, ICICI Prudential Life Insurance, Kotak Mahindra Life Insurance, Quant Mutual Fund, and Max Life Insurance.

The move comes two months after Lighthouse Funds divested its remaining 2.9% stake in Poly Medicure Ltd for Rs 550-600 crore ($66-72 million), scoring a stellar return.

The PE firm had initially picked nearly 2% stake in Faridabad-based medical devices maker for Rs 90-100 crore ($12.3-13.6 million then) at the fag end of 2020. It topped up its bet during a qualified institutional placement weeks later. A year later, it again put in an estimated Rs 40-50 ore, taking its total exposure in the company to around Rs 200 crore. It cashed out from the company with a total of about $100 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 1,375 crore during FY24, up from Rs 1,115 crore a year before. The firm’s net profit also rose to Rs 258 crore from Rs 179 crore.

Founded in 2006 by Sachin Bhartiya, Sean Sovak and Mukund Krishnaswami, Lighthouse has raised three funds with AUM of about $500 million so far. It has backed over 25 companies across food, lifestyle, home improvement and healthcare sectors.

Lighthouse usually invests $20-50 million per transaction.

In May 2019, it had raised the third fund with a capital of Rs 1,750 crore, including a pool of capital for co-investment opportunities. Besides Duroflex and Fabindia, some of its investments include cosmetics and beauty brands Nykaa and Kama Ayurveda; snacking brand Bikaji; footwear brand Aqualite and business-to-business (B2B) online marketplace for medical supplies, Medikabazaar.

Recently, the fund has also struck some of its most successful exits. In September 2023, the investor divested its residual stake in listed snacks maker Bikaji Foods International Pvt Ltd and in November 2022, it also scored a blockbuster partial exit from beauty e-tailer Nykaa. The PE fund also made a partial exit from Stylam Industries Ltd in 2022.

(As published in www.vccircle.com, 23 August, 2024 )