Laurus Labs Announces ₹160 Crore Equity Investment in Subsidiary Laurus Bio

Sandip Raj Gupta

    07/Dec/2024

  • Investment Breakdown: Laurus Bio will receive ₹120 crore from Eight Roads Ventures and F-Prime Capital, with Laurus Labs co-investing ₹40 crore at the same valuation.
  • Stake Distribution: Post-transaction, Laurus Labs, Eight Roads Ventures, and Laurus Bio promoters will hold 75%, 14%, and 9% stakes, respectively, on a fully diluted basis.
  • Strategic Expansion: Funds will be utilized to enhance Laurus Bio's fermentation-based manufacturing and R&D capabilities.
  • Promoter Share Warrants: Promoters of Laurus Bio are issued share warrants, exercisable within two years.
  • Additional Funding Opportunity: Laurus Labs or Eight Roads Ventures may invest an additional ₹35 crore by December 2025 at the same valuation.
  • Laurus Labs Drives Biomanufacturing Growth with ₹160 Crore Investment in Laurus Bio

    Introduction
    Laurus Labs Limited (BSE: 540222, NSE: LAURUSLABS) has reinforced its commitment to innovation and sustainable manufacturing with a ₹160 crore equity investment in its subsidiary, Laurus Bio. The funding, led by Eight Roads Ventures and F-Prime Capital, marks a significant milestone in Laurus Bio’s growth trajectory, supporting its expansion in microbial fermentation-based manufacturing capabilities and R&D infrastructure.

    Details of the Investment
    The investment includes ₹120 crore from Eight Roads Ventures and F-Prime Capital, global investors with expertise in biopharmaceuticals and CDMO (Contract Development and Manufacturing Organization) services. Laurus Labs will co-invest an additional ₹40 crore at the same valuation, demonstrating its continued commitment to Laurus Bio’s growth.

    Promoters of Laurus Bio have also been issued share warrants, exercisable over two years. Additionally, Laurus Labs or Eight Roads Ventures can invest up to ₹35 crore by December 2025 under the same terms, ensuring flexibility for future funding needs.

    Stake Distribution Post-Transaction
    Upon completion of the transaction, the equity structure will be as follows:

    • Laurus Labs: 75%
    • Eight Roads Ventures: 14%
    • Promoters of Laurus Bio: 9%

    Utilization of Funds
    The ₹160 crore equity infusion will be strategically allocated to:

    • Expanding fermentation-based manufacturing capabilities.
    • Strengthening R&D infrastructure to accelerate product development.
    • Enhancing microbial fermentation capabilities for biomanufacturing.

    These investments will enable Laurus Bio to cater to growing customer demand across biopharma, food, health, nutrition, and personal care industries.

    Laurus Bio: A Rising Biomanufacturing Leader
    Laurus Bio Private Limited, a subsidiary of Laurus Labs, is an integrated biomanufacturing organization specializing in precision fermentation and recombinant technology. With over 15 years of experience, Laurus Bio has built a strong reputation for developing ultra-pure, animal-free recombinant products for the biopharma industry.

    Its expertise extends to:

    • Food and Nutrition: Large-scale production of sustainable bio-based materials.
    • Personal Care: Developing innovative ingredients for consumer products.
    • Biopharmaceuticals: Meeting global demand for cutting-edge solutions in precision manufacturing.

    Strategic Partnership with Eight Roads Ventures
    Eight Roads Ventures, a prominent investor in global biopharmaceuticals, has a history of successful partnerships with Laurus Labs and Laurus Bio. This renewed collaboration reflects confidence in Laurus Bio’s potential to lead the microbial fermentation industry.

    Dr. Prem Pavoor, Managing Partner at Eight Roads Ventures India, commented:

    "We are thrilled to re-unite with Laurus Labs and Laurus Bio. This investment will enable Laurus Bio to expand microbial fermentation capabilities, meet the global demand for sustainable manufacturing, and emerge as a leader in biomanufacturing."

    Driving Sustainable Growth
    With this funding, Laurus Bio aims to accelerate its journey toward becoming a global leader in sustainable biomanufacturing. Key growth areas include:

    • Faster development of innovative products.
    • Enhancing internal R&D pipelines.
    • Scaling commercial-scale manufacturing to meet global demand.

    Conclusion
    The ₹160 crore investment in Laurus Bio underscores Laurus Labs’ commitment to advancing sustainable manufacturing technologies and fostering innovation in the biomanufacturing sector. With robust support from Eight Roads Ventures and F-Prime Capital, Laurus Bio is well-positioned to expand its capabilities, deliver cutting-edge solutions, and solidify its global presence.

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