ChrysCapital eyes stake in Linux Labs

According to a report by the Economic Times, the Mumbai-based private equity firm ChrysCapital is in advanced stages of negotiations to acquire a 20-25% stake in Linux Laboratories. The deal, valued at approximately $60-65 million, marks a significant shift in the ownership structure of the Chennai-based pharmaceutical company, which specializes in central nervous system formulations.

As part of the proposed transaction, the Tata Capital Healthcare Fund is expected to exit its entire 15% stake in the company. Tata Capital had previously invested ₹80 crore in Linux Laboratories in 2021. The remaining portion of the stake acquisition by ChrysCapital is slated to be executed through a primary capital infusion, which will provide the company with fresh funds for its operations and expansion efforts.

Linux Laboratories, founded in 2007, currently maintains a diverse portfolio of over 64 brands across 180 products. The company’s primary therapeutic focus areas include neurology, psychiatry, and cosmetic dermatology. Current data indicates that the company's founders, Keerthivasan K, Ananda Kumar Sundharam, and Hariharan Parameswaran, collectively hold an 84.68% stake, with the remainder held by the Tata Capital Healthcare Fund. Neither ChrysCapital nor Linux Laboratories has issued a formal statement confirming the finalization of the deal at this time.