Ahmedabad: Rajsha Pharmaceuticals, Ahmedabad’s leading Ayurvedic product focussed pharmaceutical company, announced the dilution of its majority stake with an Ahmedabad-based Pharma Group.
Funds received from stake dilution will accelerate the expansion of the production capacity and add to the growth capital of Rajsha Pharmaceuticals.
Founded in December 1986 by Rajendra Shah, Rajsha Pharmaceuticals is one of the fastest-growing Ahmedabad based Ayurvedic pharmaceutical companies engaged in developing, manufacturing and marketing a broad range of Ayurvedic Cream and Ointments, Churna, Syrup and Suspensions, Granules, etc for the domestic market. The company holds numerous certifications for producing quality products, including US-FDA approval for one of its products. Their products are available globally as well.
The company has been witnessing exponential growth in demand for its products, needing Rajsha Pharmaceuticals to scale up its production facility, which in turn created the need for infusion of working capital. For assistance in finding the right strategic investor, they approached GetFive Corporate Advisors LLP, an Ahmedabad-based boutique Investment Banking and M&A Transaction Advisory firm.
After due diligence GetFive team advised that bringing in the investor who will provide room for production and capital for new machinery to aid the company’s growth. The team approached several investors. They found the right valuation with an Ahmedabad-based Pharma Group, whom they helped close as an investor. The entire project was done on a hot-footing and turned around in 3 months.
An elated Rajendra Shah, COO, Rajsha Pharmaceuticals, said “We approached Getfive Team for bringing in the investor; their recommendation on selling the majority stake in the company to get an investor who could enable our growth quickly was invaluable. The Guidance and support from Anand Sanghvi and Shrikant Goyal during the pitching and the consequent closure helped reduce the turnaround time.”
“It was a pleasure working with Mr Rajendra Shah and his team. Our confidence in this partnership came from the fact that the offering of both companies truly complemented each other, making the company’s portfolio richer and broader. For both stakeholders, this was a win-win deal.” said Anand Sanghvi, Managing Partner, GetFive.
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