16 May , 2021 By : Kanchan Joshi
Bulk drugs firm Supriya Lifescience Ltd has filed a draft red herring prospectus (DRHP) with Securities and Exchange Board of India (Sebi) to raise Rs1,200 crore via an initial public offering (IPO).
The IPO consists of a fresh issue of Rs200 crore and an offer for sale of up to Rs1,000 crore by its promoter Satish Waman Wagh.
ICICI Securities and Axis Capital are the lead managers of the issue.
Proceeds from the issue will be used for capital expenditure requirements worth Rs85.38 crore. The company aims to expand its existing manufacturing facilities at its main plant at Lote, Maharashtra, and to continue investing in existing manufacturing technologies to build new capabilities to support the production of its portfolio of active pharmaceutical ingredients (APIs).
The firm will also use Rs67 crore to repay debt from IPO proceeds. As of March 2021, the company's total outstanding borrowings amounted to Rs67.95 crore.
For fiscal year 2020, total income of the company was at Rs322.71 crore versus Rs285.86 crore a year ago. Net profit stood at Rs73.37 crore against Rs39.42 crore.
Supriya Lifescience is a key Indian manufacturer and supplier of APIs, with a focus on research and development. As of March 2021, the firm had niche product offerings of 39 APIs focused on diverse therapeutic segments such as antihistamine, analgesic, anaesthetic, vitamin, anti-asthmatic and anti- allergic.
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