Virupaksha Organics Limited, a research and development (R&D) driven Indian pharmaceutical company engaged in the manufacture of active pharmaceutical ingredients (APIs) and intermediates, has filed its draft red herring prospectus (DRHP) with capital markets regulator SEBI to raise Rs. 740 crore through an initial public offering (IPO).
According to the DRHP, the proposed IPO of the Hyderabad-based company is entirely a fresh issue of equity shares.
Virupaksha proposes to utilize the net proceeds of the fresh issue, with Rs. 360 crore allocated towards funding capital expenditure requirement for capacity expansion at Unit 1, Unit 2, Unit 4 and Unit 5; Rs. 195 crore earmarked for prepayment of all or a portion of certain outstanding borrowings, and the balance towards general corporate purposes.
Chandra Mouliswar Reddy Gangavaram, Balasubba Reddy Mamilla, Chandrasekhar Reddy Gangavaram, Vedavathi Gangavaram, Kondapalli Sandeep Reddy, Kotla Suraj Reddy, Mamilla Nagarjun Reddy, Gangavaram Sri Lakshmi and G Sri Vidya are the Promoters of the company.
Virupaksha manufactures small molecule APIs, key starting materials (KSMs), and intermediates. It is focussed on manufacturing products across diverse therapeutic areas of anti-histamines, analgesics, anti-fungals, anti-diabetics, anti-depressants, anti-asthmatics, anti-tussives, anti-anginals, antihypercholesterolemics, and anti-ulceratives.
Virupaksha also has a contract development and manufacturing (CDMO) business, leveraging its R&D and manufacturing capabilities to provide CDMO services to third-party manufacturers. As of March 31, 2025, it had a diversified portfolio of 54 products, comprising 23 APIs and 31 intermediates, serving more than 550 customers in over 100 countries.
The Company operates six manufacturing units, with four located in Hyderabad, Telangana and two in Humnabad, Karnataka, equipped with an aggregate of 223 reactors with a reactor volume of 988 kilolitres.
In FY25, Virupaksha reported revenue from operations of Rs. 811 crore and a profit after tax (PAT) of Rs. 78 crore.
The company, in consultation with the BRLMs, may consider a Pre-IPO Placement aggregating up to Rs. 148 crore; prior to filing of the Red Herring Prospectus with the ROC. If the Pre-IPO Placement is undertaken, then the fresh issue will be reduced to the extent of such Pre-IPO placement.
Axis Capital Limited and SBI Capital Markets Limited are the book running lead managers (BRLMs) to the offer.
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