Murugappa group firm Tube Investments of India Ltd (TII) has entered into a supplementary agreement with 3xper Innoventure Ltd and N Govindarajan to invest ₹75 crore by TII and ₹25 crore by Govindarajan respectively, in compulsorily convertible preference shares (CCPS) of the company.
TII subsidiary 3xper operates in the contract development and manufacturing organisation (CDMO) space within the pharmaceutical industry. The proposed fund raise is aimed at scaling up operations of 3xper and its subsidiary.
Investment structure, holdings
TII currently holds 95 lakh equity shares of face value ₹10 each and ₹284.05 crore worth of Series A CCPS (face value ₹100 each) in 3xper.
The latest infusion is part of the company’s broader strategy to build a presence in high-growth pharmaceutical segments.
Strategic focus on CDMO, API
TII had identified CDMO and active pharmaceutical ingredients (API) as new business verticals with significant growth potential.
The company noted that CDMO is among the fastest-growing segments in the pharma industry, driven by increasing outsourcing of R&D and manufacturing by global pharmaceutical players to focus on core operations.
Background, leadership
In March 2023, TII had entered into an agreement with N Govindarajan to establish its CDMO business through a new subsidiary, 3xper.
Govindarajan, a veteran of the Indian pharmaceutical industry, was appointed Chief Executive Officer of 3xper.
At the time, TII had committed to invest up to ₹285 crore in equity and CCPS in tranches, while Govindarajan had proposed an investment of up to ₹15 crore.
Outlook
The additional funding is expected to accelerate capacity expansion and strengthen 3xper’s positioning in the CDMO space, aligning with TII’s strategy to diversify into high-value, technology-driven manufacturing segments.