Virupaksha Organics files draft papers with Sebi for ₹740 crore IPO

The company may consider raising ₹148 crore in a pre-IPO placement round

Pharmaceutical company Virupaksha Organics has filed preliminary papers with capital markets regulator Sebi to raise Rs 740 crore through an initial public offering (IPO).

The proposed IPO of the Hyderabad-based company is entirely a fresh issue of equity shares, according to the draft red herring prospectus (DRHP) filed on Monday.

The company may consider raising Rs 148 crore in a pre-IPO placement round. If such placement is undertaken, then the issue size will be reduced.

Virupaksha proposes to utilise proceeds of the fresh issue to the tune of Rs 360 crore towards funding capital expenditure requirement for capacity expansion, Rs 195 crore earmarked for payment of debt and the balance towards general corporate purposes.

Virupaksha Organics is a research and development (R&D) driven Indian pharmaceutical company engaged in the manufacturing of active pharmaceutical ingredients (APIs) and intermediates.

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.

In FY25, Virupaksha reported revenue from operations of Rs 811 crore and a profit after tax (PAT) of Rs 78 crore.

As per an F&S report, the Indian API market is expected to reach Rs 600 crore by 2029, fuelled by the increasing demand for generic medications, expanding domestic pharmaceutical consumption, and government initiatives like the PLI scheme promoting production.

Supriya Lifescience Ltd, Alivus Life Sciences Ltd, Divi's Laboratories Ltd, Laurus Labs Ltd, Aarti Drugs and Neuland Labs Ltd are the listed peers of the company.

Axis Capital and SBI Capital Markets are the book-running lead managers (BRLMs) to the offer for assisting the company in its maiden public offering.