Virupaksha Organics Files DRHP to Raise ₹740 Crore via IPO for Capacity Expansion and Debt Repayment

Virupaksha Organics, a Hyderabad-based pharmaceutical company, has filed preliminary papers with SEBI to raise ₹740 crore through an initial public offering (IPO). The IPO is a fresh issue of equity shares.

The company may also consider a pre-IPO placement of ₹148 crore, which would reduce the IPO size if undertaken.

Use of Proceeds

The company plans to use the IPO funds as follows:

• ₹360 crore for capital expenditure to expand manufacturing capacity
• ₹195 crore to repay debt
• Remaining funds for general corporate purposes

About Virupaksha Organics

Virupaksha Organics is an R&D-driven pharmaceutical company engaged in manufacturing active pharmaceutical ingredients (APIs) and intermediates.

• Product portfolio: 54 products (23 APIs and 31 intermediates)
• Customers: Over 550 customers in more than 100 countries
• Manufacturing units: Six units (four in Hyderabad, two in Humnabad, Karnataka)

Financial Performance

For FY25, the company reported:

• Revenue: ₹811 crore
• Profit after tax (PAT): ₹78 crore

Market Opportunity

The Indian API market is expected to reach ₹600 crore by 2029, driven by rising demand for generics, growing domestic pharmaceutical consumption, and government initiatives like the PLI scheme.

Read More: Upcoming IPOs This Week: 5 Mainboard and 16 SME IPO Set to Open Week Starting Sep 29!

Peers

Listed peers include Supriya Lifescience, Alivus Life Sciences, Divi’s Laboratories, Laurus Labs, Aarti Drugs, and Neuland Labs.

Book-Running Lead Managers

Axis Capital and SBI Capital Markets will manage the IPO.

Conclusion

Virupaksha Organics’ IPO offers investors a chance to participate in a growing API and intermediates business with strong domestic and international reach, backed by expansion plans and solid financials.

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.