Besides the fresh issue, there will be an offer for sale of shares. The company is into domestic pharmaceutical formulations contract development and manufacturing business.
According to the Draft Red Herring Prospectus (DRHP), the company will also consider a pre-IPO (Initial Public Offer) placement of up to Rs 50 crore.
The proposed offer includes fresh issue of Rs 165 crore and an offer for sale of up to 5,142,067 equity shares. The latter will comprise “up to 1,136,000 equity shares by the individual selling shareholder and up to 4,006,067 equity shares by the investor selling shareholder”, as per the document.
The proceeds from the IPO will be utilised for purchasing of equipment required for capacity expansion of the facility at Dehradun Plant – IV and addition of injectables dosage capability at the facility at Dehradun Plant-II.
It will also be used for funding incremental working capital requirements, repayment/ prepayment of certain of borrowings and general corporate purposes.
For the nine months ended December 31, 2020, the company had a profit of Rs 9.67 crore.
Book Running Lead Managers to the issue are SBI Capital Markets Ltd, DAM Capital ad IIFL Securities.
Reflecting robust IPO market sentiments, a significant number of companies have filed papers for IPOs and there have also been new listings.
So far this fiscal, at least 15 companies have filed their DRHPs for initial share sales, as per data available on Sebi website.
