Mount Kellett Capital Management , US private equity group, is investing Rs 410 crore in one of India’s top pharma retailer MedPlus Health Services. The three companies Mount Kellett, TVS Capital and Ajay Piramal Group’s healthcare fund, may invest to acquire 35% stake in the Hyderabad-based firm. Med plus operates over 800 pharmacies besides diagnostic labs and clinics since five years. It spreads across five states- Andhra Pradesh, Tamil Nadu, Karnataka, Maharashtra and West Bengal. MedPlus promoters have a competition with Apollo Pharmacy and Guardian Life care, to be in one of the three slots in India. Mount Kellet was being followed with repeated phone calls and text messages for a response which was so far kept confidential. Mount Kellet will invest Rs. 300 crore , where as TVS Capital and the Piramal fund will fund the remaining equity together. The deal can be valued over $260 million for Med Plus with a one board seat to TVS and the Piramal fund each. The turnover of MedPlus is expected to be around Rs 500 crore with estimated total number of pharma retail (or chemist) shops is Rs 8 Lakh. The organized retail chains share 3 per cent of the India’s pharmaceutical retail industry. India has been inviting a number of private equity investors which ended with a big deal last year- Warburg Pincus invested $85 million in Mumbai-based Metropolis Labs.

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