Virupaksha Organics, an R&D-driven Indian pharmaceutical company specialising in active pharmaceutical ingredients (APIs) and intermediates, has filed draft papers with India’s capital markets regulator, SEBI, to raise INR 740 crore through an initial public offering (IPO). The company has proposed this IPO as a fresh issue of equity shares and, as per the draft red herring prospectus, may consider a pre-IPO placement of up to INR 148 crore, which if executed would proportionally reduce the issue size.

The company plans to allocate INR 360 crore of the funds towards capital expenditure for capacity expansion, INR 195 crore for debt repayment, and the remainder for general corporate purposes. In the financial year 2024–25, Virupaksha reported revenue from operations of INR 811 crore and a profit after tax of INR 78 crore.

Virupaksha’s portfolio comprises 54 products, including 23 APIs and 31 intermediates, servicing more than 550 customers across over 100 countries. It operates six manufacturing units — four in Hyderabad, Telangana, and two in Humnabad, Karnataka. The company sees growth prospects in the Indian API market, expected to be propelled by rising generic demand, increased domestic consumption, and government support such as the PLI (Production Linked Incentive) scheme.

Axis Capital and SBI Capital Markets have been appointed as book running lead managers (BRLMs) for the IPO. With this move, Virupaksha aims to strengthen its position in the global pharmaceutical ingredients value chain, while providing investors an opportunity to participate in its growth story.