IndiaRF-backed API and CRAMS maker Synthimed Labs is exploring a fundraise of around $250 million at a valuation of up to $1 billion. The move aims to unlock value and accelerate its expansion through inorganic growth in the pharmaceutical sector.

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Background and Recent Developments Growth Focus and Market Potential About Synthimed Labs

Background and Recent Developments

Synthimed Labs, promoted by India Resurgence Fund (IndiaRF)—a joint venture between Piramal Group and Bain Capital—had acquired the API, intermediates, and CRAMS business of listed company Ind-Swift Laboratories for ₹1,650 crore in September 2023.

According to industry sources, IndiaRF has initiated a process to sell a minority stake in Synthimed Labs to raise approximately $250 million. One of the sources stated that the company has shown strong growth since the acquisition, achieving significant operational scale.

Based on projected FY26 EBITDA of ₹600 crore and a targeted multiple of 15x, Synthimed Labs is expecting a valuation of up to ₹9,000 crore ($1 billion). Even if the valuation settles slightly lower, it would still represent a large transaction in the Indian API sector.

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Growth Focus and Market Potential

A third industry insider revealed that Synthimed Labs intends to utilize the proceeds for further acquisitions in the API space, strengthening its presence in both domestic and international markets. The company has already circulated teasers to potential investors, including leading private equity funds.

The API industry has gained strong investor interest recently, driven by the ‘China Plus One’ strategy, which benefits Indian manufacturers by reducing global dependence on Chinese supply chains.

About Synthimed Labs

Headquartered in Chandigarh and led by Kacharu Toshniwal, former Zydus Lifesciences executive, Synthimed Labs operates three manufacturing sites in Punjab and Jammu. The company serves regulated markets, holding approvals from major global authorities such as USFDA, EDQM, PMDA, and WHO.

Synthimed specializes in APIs for cardiovascular, antidiabetic, and antipsychotic treatments, among others, and holds a leadership position in the macrolide antibiotic segment.

IndiaRF’s Investment Strategy

IndiaRF is a 50:50 joint venture between Piramal Group and Bain Capital, focusing on special situations and control investments across mid-market sectors. The firm recently completed investments from its first $629 million fund and is now raising IndiaRF Fund 2 for new opportunities.

The platform’s existing portfolio spans diverse sectors, including healthcare, automotive, and infrastructure. It has backed firms like Livasa Hospitals, Setco Automotive, and Thrissur Expressway Ltd.

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