Ajanta Plans INR 2,000 Cr Capital Raise for Restaurant Brands Asia Buyout

Ajanta Pharma's promoters are exploring financing options of up to INR 2,000 crore to fund the acquisition of a controlling stake in Restaurant Brands Asia, the India and Indonesia franchisee of Burger King, in a transaction that would mark the drugmaker's diversification into the fast-growing quick service restaurant sector.

The fundraise is expected to involve roughly INR 2,000 crore, structured through promoter-level loans and operating-company debt, according to sources. The financing structure is still being finalised and no lender has been formally appointed, so far.

Barclays and Standard Chartered are among banks that have been sounded out for the funding, though talks remain at a preliminary stage.

The fund-raise is aimed at backing the acquisition of a controlling interest in Restaurant Brands Asia, where private equity firm Everstone Capital is preparing to exit its entire 11.26% stake. Restaurant Brands Asia has a market capitalisation of roughly INR 3,800 crore.

“Lenders are assessing leverage, cash-flow visibility and collateral structures before committing to the deal," said a source.

Earlier this month, Restaurant Brands Asia said it had entered into a definitive agreement with Inspira Global Group, under which the latter will infuse INR900 crore through a preferential equity allotment and a further INR700 crore via warrants, both priced at INR70 a share.