DRL, Warburg Pincus, EQT leading contenders to buy BSV

 DRL, along with EQT and Warburg Pincus, are leading frontrunners to acquire Advent's share in Mumbai-based biopharmaceutical company Bharat Serums and Vaccines (BSV). New- Delhi based Mankind Pharma is also interested in this purchase, but has a more a conservative valuation approach.

Currently, BSV is being valued at $1.25-$1.5 billion, lower than the earlier $2 billion valuation. In 2019, the company valuation stood at $500 million.

Private Equity player- Advent International is looking to exits its majority stake in BSV after 4 years. In February 2020, it had acquired a 74% stake and provided a complete exit to PE investors- OrbiMed Asia and Kotak PE. However, for promoter Daftary family, it provided a partial exit. Later, with the approval from Department of Pharmaceuticals (DoP), Advent purchased the remining 26% stake from the Daftary family in the year 2023.

In FY24, BSV reported an EBITDA of ₹500 crores and is estimating ₹650 crores in FY25. Hence, the sellers are looking at 20-25 times multiple of the FY25 EBITDA.

BSV is into the healthcare business, particularly in women health products along with providing reproductive therapy assistance and other critical care products.
With the growing infertility issues, such healthcare products are in high demand. This explains the interest of big Pharma players to acquire a stake in BSV.

Several Pharma companies like Zydus Cadila, DRL and PE major plyers like Blackstone and KKR have been going after Advent's stake in BSV.