Laurus Labs Ltd. on Friday informed stock exchanges that venture capital firms Eight Roads Ventures and F-Prime Capital will invest a total of Rs 120 crore in its subsidiary Laurus Bio Pvt.
Laurus Bio has signed a definitive agreement with the VC firms, while parent Laurus Labs will also co-invest an additional Rs 40 crore at the same valuation, according to the press release attached to the filing.
The animal-origin-free recombinant protein maker will use the funds for expanding its fermentation-based manufacturing capabilities to cater to its growing demand.
While Eight Roads Ventures and F-Prime Capital will invest their money into Laurus Bio by this month-end, Laurus Labs' additional funds will be infused on or before June 30, 2025.
Even after the deal is completed, Laurus Labs, with a 75% share, will continue to hold a majority stake in Laurus Bio. And, Eight Roads Ventures and promoters of Laurus Bio's shareholding will be 14% and 9%, respectively, on a fully diluted basis. The balance stake shall be held by the other shareholders.
In a joint statement, Dr. Satyanarayana Chava, founder and chief executive officer of Laurus Labs, and Rajesh Krishnamurthy, CEO of Laurus Bio, said, “We are pleased to announce rejoining the partnership with Eight Roads Ventures and Laurus Lab's continued commitment with an additional investment into Laurus Bio. The company, promoters of Laurus Bio, Eight Roads Ventures, and F-Prime Capital, will drive expansion of the manufacturing and R&D infrastructure to further accelerate growth opportunities.”
They added that Eight Roads Ventures “brings a global network, relevant industry experience, and a strong track record of biopharmaceuticals and CDMO investing,” which will enable the company “to further expand and accelerate microbial fermentation capabilities, including faster development of new products, speed up the internal pipeline, enhance high-quality commercial-scale capacity to partners, and grow our industry position.".
Prem Pavoor, managing partner of Eight Roads Ventures India, while lauding Laurus Labs and Laurus Bio's “best-in-class biomanufacturing platform,” said, :We are looking forward to growing Laurus Bio into a global leader in this emerging segment.”
According to him, “Biomanufacturing is already being utilised across a range of industries, including personal care, materials, food and nutrition, and pharmaceuticals.”
Shares of Laurus Labs Ltd. closed 0.41% higher at Rs 590.55 apiece on the BSE, compared to a 0.07% decline in the benchmark Sensex.
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