Warburg Pincus is in advanced talks to invest Rs 1,500 crore ($203 million) in MedPlus, India’s second-largest pharmacy retailer, through a mix of debt and equity, for a significant minority stake to pay off existing lenders such as Goldman Sachs and Edelweiss and provide an exit to minority shareholders.
PremjiInvest, currently the largest shareholder in the company, will continue to remain invested with around 18% stake and may also participate in this round while Warburg will become the single-largest shareholder. MedPlus founder and CEO Madhukar Gangadi will continue to run the business releasing his share pledges with the investments.
Warburg is believed to have trumped rivals such as Temasek that were also keen to invest in the company, the people said. The final documentation is underway and is expected to get signed this coming week.
Meanwhile, US-based GoldenTree Asset Management and Pacific Investment Management Co (Pimco) have likely joined a consortium led by investment firm Oak Hill Advisors, which is in talks to provide a $2 billion (Rs 14,720 crore) credit line to Vodafone Idea.
The expansion of the lender consortium will fill up the sizeable funding requirement quickly with the distribution of risk exposure across a larger pool of financiers, one of the persons said.
The telco had in September announced a Rs 25,000 crore fundraising plan via a mix of debt and equity. The $2 billion credit line it is negotiating with the consortium is part of that plan.
The expanded consortium may get to a binding term sheet by mid-January, it was learned.