Supriya Lifescience has filed early papers with markets regulator to raise ₹1,200 crore through an initial public offering, with the company planning to use the net proceeds for expansion and repayment of debt.

The Mumbai-based bulk drugs firm intends to raise ₹200 crore through a fresh issue, and an offer for sale (OFS) of ₹1,000 crore by promoter Satish Waman Wagh.

ICICI Securities and Axis Capital are the book running lead managers and Link Intime India is the registrar to the issue.

To expand manufacturing

The company, according to draft red herring prospectus, intends to expand its existing manufacturing facilities at its main plant at Lote, Maharashtra, and continue investing to build new capabilities to support the production of its active pharmaceutical ingredients portfolio.

On May 15, it had received a board approval to use ₹85.38 crore from the proceeds for the proposed capital expenditure and ₹67 crore for repayment of certain debts.

The general corporate purposes for which the company proposes to use the net proceeds include strategic initiatives and meeting exigencies, meeting expenses and strengthening of manufacturing and R&D capabilities, it said in the filing.

The company is a manufacturer and supplier of APIs, with a focus on R&D. As of March 31, 2021, it has 39 APIs focused on diverse therapeutic segments such as antihistamine, analgesic, anaesthetic, vitamin, anti-asthmatic and anti-allergic.

The firm posted a total revenue of ₹267.93 crore for the nine-month-period ended December 31, 2020, while that for financial year 2020 stood at ₹322.71 crore. It’s total revenue for fiscals 2019 and 2018 were at ₹285.86 crore and ₹221.51 crore.

Supriya Lifescience was the largest exporter of chlorpheniramine maleate and ketamine hydrochloride from India, contributing to 45-55 per cent and 65-70 per cent, respectively, of the API exports from India, between fiscal 2017 and 2020.

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