Upcoming IPO: Hindustan Laboratories Files Draft Papers with SEBI to Raise Funds

Generic drug manufacturer Hindustan Laboratories has unveiled plans to tap the capital markets through an initial public offering that combines a fresh equity issuance with a partial stake sale by its promoter. 

IPO Structure and Use of Proceeds 

The proposed IPO consists of a fresh issue of 50 lakh equity shares alongside an offer for sale of 91 lakh shares by sole promoter Rajesh Vasantray Doshi.  

The company plans to deploy ₹72.5 crore from the fresh issue towards meeting working capital requirements, while the remaining funds will be used for general corporate purposes. Choice Capital Advisors has been appointed as the merchant banker for the issue. 

Business Profile and Operations 

Incorporated in 2017, Hindustan Laboratories focuses on manufacturing generic pharmaceutical formulations that offer cost-effective alternatives to branded medicines. A significant portion of its business is driven by procurement contracts awarded by the Ministry of Health and Family Welfare through various central and state government agencies.  

As of September 2025, the company’s portfolio comprised 948 products spanning multiple therapeutic areas, including anti-diabetic, anti-infective, cardiac, gastrointestinal, nutritional and pain management segments. 

Financial Performance 

For the 1st half of FY26 ended September 2025, the company reported revenue of ₹112.6 crore with a profit of ₹18.2 crore.  

In FY25, revenue rose 17.9% year-on-year to ₹219.7 crore, while profit increased 21% to ₹41.3 crore, indicating steady operational growth. 

Competitive Landscape 

Hindustan Laboratories operates in a competitive generics market and faces competition from listed pharmaceutical players such as Ajanta Pharma, Syncom Formulations and Windlas Biotech, particularly in government-supplied formulations. 

Read More: Yajur Fibres IPO to Open for Subscription on January 7, 2026! 

Conclusion 

With a strong presence in government-backed pharmaceutical procurement and consistent financial growth, the IPO positions Hindustan Laboratories to strengthen its working capital base and support its next phase of expansion in India’s generics market. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.