- 09 Dec 2024
- ICICI Securities
LAURUS LABS SECURES EQUITY INVESTMENTS FOR LAURUS BIO
News: Laurus Labs subsidiary, Laurus Bio, has signed a definitive agreement for an equity investment of ₹ 120 crore from global venture capital firm Eight Roads Ventures and its sister fund F-Prime Capital. Laurus Labs also agreed to co-invest an additional ₹ 40 crore at the same valuation. As per management, this investment will enable the company to further expand and accelerate microbial-fermentation capabilities, including faster development of new products, speed-up internal pipeline and enhancing high quality commercial-scale capacity to partners.
Views: The quarterly run-rate for Laurus Bio has been stagnant at around ₹ 40-45 crore for the last few quarters mainly due to capacity constraints. The management during Q2 concall had earmarked ₹ 225 crore capex for Bio and the above investments are mainly to fund this capex. The company is getting incremental inquires and interest in enzyme engineering and commercialisation. The deal values Laurus Bio at 3.8x FY26 sales (assuming 15% growth).
Impact: Positive