MO Alternate Investment Advisors has announced an investment of ₹460 crore for a majority stake in Megafine Pharma. The Sanghvi Family, one of the founding-promoter groups, has also participated in this transaction, increasing their stake in the company.
Headquartered in Mumbai, Megafine Pharma is an export-focused Active Pharmaceutical Ingredients (APIs) company with two USFDA-approved manufacturing facilities in Nashik and Vapi. The company specializes in the manufacture and sale of a diverse range of high-value, low-volume niche APIs for chronic therapies.
Established in 1995, Megafine Pharma is backward integrated to manufacture its own intermediates while also offering contract manufacturing services for APIs and Intermediates to third-party customers. Shailesh Sanghvi, Managing Director of Megafine Pharma, expressed excitement about partnering with MO Alts’ team to embark on the next stage of growth, leveraging the company’s manufacturing facilities approved by all major global regulatory authorities.
According to Rohit Mantri, Managing Director and Co-Head of Private Equity at MO Alts, the API industry in India is experiencing double-digit growth driven by increased outsourcing, lower costs, and the de-risking of global supply chains from China. This investment marks the first sole control investment for MO Alts and will focus on strengthening manufacturing capabilities and creating a platform for further inorganic opportunities.
Deloitte (financial advisor), JSA (legal), and Pioneer (legal) advised Megafine and its shareholders on the transaction, while Quillon Partners (legal), Alvarez and Marshall (financial), PWC (tax), and MP Advisors (commercial) advised MO Alts on the deal.
The article was first published on February 25, 2025.
