New Delhi, July 10: US-based Blackstone, the world’s largest buy-out fund, has invested $50 million in Emcure Pharmaceuticals Ltd in a negotiated deal with the company, which is expected to be completed by August this year.

This is the first such negotiated investment by the US investment firm in the country.

Emcure announced today that its board has approved the agreement “as part of which the Blackstone group and its affiliates will invest $50 million in the company”.

The transaction represents Blackstone’s first major investment in India after the fund launched its private equity business in the country in mid-2005, a release issued by both the firms said.

Humayun Dhanrajgir, chairman of Emcure’s Board, said, “The board and management of Emcure were impressed with Blackstone’s commitment to the pharmaceutical sector and their level of diligence in exploring an investment option in Emcure.”

The Blackstone group had earlier announced that it might raise $500 million to invest in India, where a slide in the stock market has made search for possible targets easier. The New York-based firm had claimed a dedicated fund for India would commit the company to invest in the country.

“Our investment in Emcure reflects our strong interest in the Indian pharmaceutical industry, which we believe is well positioned to show robust domestic growth as well as benefit from an increased amount of outsourcing to India... We believe our industry expertise and relationships with the CEOs of some of the leading pharmaceutical businesses in the world will complement the company’s growth strategy,” said Akhil Gupta, Blackstone country head. The firm plans to spend at least $25 million in any single investment in India and is seeking returns of about 25 per cent.

Blackstone will only invest in the listed companies if it can get a board seat “and some governance, where our presence will make a difference”.

Blackstone, which has a team of 11 private equity and real estate experts in India, will decide on whether it will hire more.