InvestorQ : Is GVK planning to sell its stake in the biotechnology business?
diksha shah made post

Is GVK planning to sell its stake in the biotechnology business?

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Rutuja Nigam answered.
5 months ago
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There is no confirmation yet but reportedly a number of PE funds are surely interested in the GVK biotech property. That is not surprising considering the fact that currently most of the pharma and biotech stocks are in heavy demand.

Under this situation, the latest company that is under the scanner of the PE funds is GVK Bio. It may be recollected that GVK Bio was jointly floated by the GV Krishna Reddy group of Hyderabad and DS Brar, the former CEO of Ranbaxy Laboratories.

While valuations are yet being worked out and PE funds are yet to firm up plans the initial expressions of interest suggest that the valuation could be anywhere close to $800 million. There have already been a slew of deals in this space in the last few months.

For the GVK group, that is in the midst of a liquidity generation drive. With the ED and other investigations going on, this move should come as a much needed liquidity solace in a tough year. The deal is expected to be closed during this financial year.

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