Emil Pharmaceutical Industries, the Mumbai-based privately held contract manufacturer, has sold a minority stake to raise Rs 150 crore from Somerset Indus Capital Partners.

“The investment is through a mix of primary (Rs 120 crore) and secondary (Rs 30 crore) sale,” said Tushar Korday director, Emil Pharmaceutical. “The investment outlay may increase in the near future,” Korday added, but the company did not disclose the size of the minority stake.

Korday said Emil plans to utilise the proceeds for rapid expansion and modernization of pharmaceutical formulations’ capacities and increasing its footprints in rest-of-the-world (ROW) as well as regulated markets.

Emil is also gearing up to widen its product basket including expanding into nutraceuticals, along with looking at inorganic growth opportunities complementary to its business, people privy to the deal told ET. “We at Emil are indeed honoured to have such a strong group of investors backing us as we continue to innovate and grow. This funding will allow us to achieve the desired goals of the management,” Korday added.

“Zulfiqar Shivji and Viral Sharda of ZADN & Associates advised Emil Pharmaceutical in raising funds from the PE fund,” said a person who is part of the team that advised the transaction.

The investment will be Somerset Indus Capital’s fifth, and second pharmaceutical investment, from its Fund II.