Indian Drugmaker Intas Said to Consider Scrapping Plans for IPO

Intas Pharmaceuticals Ltd., an Indian drugmaker part owned by ChrysCapital Management Co., is considering scrapping plans for an initial public offering, said three people with knowledge of the matter.

ChrysCapital, which manages about $2.5 billion, has approached Goldman Sachs Group Inc. and Temasek Holdings Pte about selling a 10.2 percent stake should Intas pull its IPO, said one of the people, who asked not to be identified as the deliberations are private. The buyout firm is seeking about $150 million for the holding, the person said.

Intas, an Ahmedabad, western India-based developer of drugs for heart disease and diabetes, in June said it was preparing an IPO. ChrysCapital would sell 11.6 million shares as part of the offering, according to the filing. The value of IPOs in India fell to a decade-low this year as political gridlock fueled stock-market volatility.

Intas and ChrysCapital will make a final decision next month whether to proceed with the sale, Chief Financial Officer Jayesh Shah said in an interview. The company appointed Kotak Mahindra Capital Co. and Morgan Stanley to manage the IPO, according to the June filing.

Ashish Dhawan, a New Delhi-based senior managing director at ChrysCapital, didn’t immediately respond to e-mails seeking comment. Spokesmen for Goldman Sachs and Temasek, Singapore’s state investment firm, declined to comment.

ChrysCapital, based in Mauritius, owns 16.2 percent of Intas. The private equity firm bought an initial stake in 2006 for 530 million rupees ($8.6 million), and last year invested another 3 billion rupees in the drugmaker, according to regulatory filings. The second investment valued Intas at about $900 million, based on exchange rates at the time, according to data compiled by Bloomberg.

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