Virupaksha Organics, a manufacturer of active pharmaceutical ingredients (APIs) and their intermediates, has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) with the aim of raising ₹740 crore through an initial public offering (IPO).
The DRHP indicates that the proposed IPO will consist entirely of a fresh issue of equity shares. Virupaksha plans to utilize the net proceeds from this fresh issue to fund various initiatives, including ₹360 crore earmarked for capital expenditure related to capacity expansion, ₹195 crore allocated for the prepayment of outstanding borrowings, and the remaining funds directed towards general corporate purposes.
The company’s promoters include Chandra Mouliswar Reddy Gangavaram, Balasubba Reddy Mamilla, Chandrasekhar Reddy Gangavaram, Vedavathi Gangavaram, Kondapalli Sandeep Reddy, Kotla Suraj Reddy, Mamilla Nagarjun Reddy, Gangavaram Sri Lakshmi, and G Sri Vidya.
Virupaksha’s product offerings encompass small molecule APIs, key starting materials (KSMs), and intermediates. The company focuses on a range of therapeutic areas, including anti-histamines, analgesics, anti-fungals, anti-diabetics, anti-depressants, anti-asthmatics, anti-tussives, anti-anginals, antihypercholesterolemics, and anti-ulceratives. Additionally, Virupaksha operates a contract development and manufacturing (CDMO) business.
As of March 31, 2025, Virupaksha had a diverse portfolio of 54 products, consisting of 23 APIs and 31 intermediates, and serves over 550 customers across more than 100 countries. The company operates six manufacturing units, with four located in Hyderabad, Telangana, and two in Humnabad, Karnataka. These facilities are equipped with a total of 223 reactors, providing a combined reactor volume of 988 kilolitres.
In the fiscal year 2025, Virupaksha reported revenue from operations amounting to ₹811 crore, along with a profit after tax of ₹78 crore. Furthermore, in consultation with the book-running lead managers (BRLMs), the company may consider a pre-IPO placement of up to ₹148 crore prior to filing its Red Herring Prospectus with the Registrar of Companies (ROC). If this pre-IPO placement occurs, the fresh issue will be adjusted accordingly.
The publication date of this announcement is September 30, 2025.
