SPC Life Science files draft papers with SEBI to raise funds via IPO

IPO

SPC Life Science Ltd has submitted preliminary documents to the Securities Exchange Board of India to gather funds through an initial public offering.

The company plans to raise up to Rs 300 crore through a fresh issue of shares and an offer for sale of up to 8.94 million shares by its current promoter, Snehal Ravjibhai Patel. Presently, Patel holds a 98.18 percent stake in the company.

The funds raised from the fresh issue, amounting to Rs 55 crore, will be utilized for the purpose of debt repayment, while Rs 40 crore will be allocated for meeting the company's working capital requirements.

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Additionally, SPC Life Science Ltd plans to allocate Rs 122.33 crore towards capital expenditure for setting up Phase 2 at its Dahej Facility, with the aim of expanding its product offerings of pharmaceutical intermediates.

This new facility will enable the manufacture of xanthene derivatives, as well as a few other intermediates and KSMs for APIs in the anti-depressant and anti-psychotic therapeutic segments.

Prior to February 2023, the company had been operating four manufacturing blocks at a single location in Ankleshwar, Gujarat. In March 2023, SPC Life Science Ltd successfully commissioned the first phase of its new manufacturing site located at Dahej, Gujarat. The new facility includes an automated manufacturing block equipped with programmable logic controllers (Dahej Block - 1), as well as common utilities, storage facilities, a quality control lab and administrative facilities.

Ambit Pvt Ltd and HDFC Bank are the lead managers of the issue.

SPC Life is a prominent Indian manufacturer of advanced intermediates used in the production of essential active pharmaceutical ingredients (APIs), including Amiodarone HCL, Pentoxifylline, Cilostazol, Trazodone, Tramadol, and Paroxetine.

Since its inception, the company has successfully developed and commercialized over 50 Pharma Intermediates for APIs in 11 different therapeutic areas, with a strong emphasis on research and development in selected therapeutic areas such as hemorheological cardiovascular, anti-arrhythmic cardiovascular, anti-platelet vasodilators, anti-psychotic and anti-depressants, and analgesics for use in both the domestic and global pharmaceutical markets.

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In the fiscal year 2021-2022, the company's revenue increased to Rs 145.64 crore from Rs 132.95 crore the previous year. Net profit for the period also rose to Rs 19.23 crore from Rs 16.67 crore. The company's EBITDA margin expanded from 16.96 percent in the previous year to 20.62 percent in FY22. As of September 2022, the company's total debt stood at Rs 60.61 crore.