Virupaksha Organics Files Rs 740-Crore IPO for Expansion and Debt Reduction
Virupaksha Organics, a pharmaceutical company, has filed draft papers with SEBI for an IPO to raise Rs 740 crore through fresh share issuance. The funds will be used for capacity expansion, debt repayment, and general corporate purposes. The company specializes in APIs and intermediates, operates six manufacturing units, serves over 550 clients in 100+ countries, and offers 54 products. Virupaksha reported revenue of Rs 811 crore and profit after tax of Rs 78 crore. The Indian API market is projected to reach Rs 600 crore by 2029.
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Virupaksha Organics, a prominent pharmaceutical company, has taken a significant step towards public listing by filing draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The company aims to raise Rs 740 crore through fresh share issuance, marking a notable development in the Indian pharmaceutical sector.
IPO Details and Fund Allocation
The IPO structure includes a potential pre-IPO placement of Rs 148 crore, which could reduce the final issue size. The proceeds from the public offering are earmarked for several strategic initiatives:
- Rs 360 crore for capacity expansion capital expenditure
- Rs 195 crore for debt repayment
- Remaining funds for general corporate purposes
Axis Capital and SBI Capital Markets have been appointed as the book-running lead managers for the IPO, bringing their expertise to guide the offering process.
Company Profile and Operations
Virupaksha Organics is an R&D-driven pharmaceutical company specializing in the manufacture of active pharmaceutical ingredients (APIs) and intermediates. The company's operations span across six manufacturing units located in Hyderabad and Karnataka, showcasing its substantial production capabilities.
Key highlights of Virupaksha Organics' business include:
- A diverse customer base of over 550 clients
- Global presence in more than 100 countries
- A product portfolio comprising 54 offerings
Financial Performance
The company has demonstrated strong financial performance, reporting:
| Metric | Amount |
|---|---|
| Revenue | Rs 811.00 crore |
| Profit After Tax | Rs 78.00 crore |
These figures underscore Virupaksha Organics' robust market position and financial health.
Industry Outlook
The Indian API market is poised for significant growth, with projections indicating it could reach Rs 600 crore by 2029. This growth is expected to be driven by:
- Increasing demand for generic medications
- Government incentives for domestic production
Virupaksha Organics' IPO comes at a time when the pharmaceutical sector is witnessing increased attention and growth opportunities, potentially positioning the company to capitalize on these market trends.
As the IPO process unfolds, investors and industry observers will be keenly watching Virupaksha Organics' next steps in its journey towards becoming a publicly-traded entity.
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