Hyderabad, Feb 13 (.): Virupaksha Organics Limited, a research and development (R&D) driven Indian pharmaceutical company engaged in the manufacture of active pharmaceutical ingredients (APIs) and intermediates, has received SEBI’s go-ahead to raise Rs. 740 crore through an initial public offering (IPO), an update with the capital markets regulator showed on Friday.
The proposed IPO of the Hyderabad-based company is entirely a fresh issue of equity shares, according to the draft red herring prospectus (DRHP).
Virupaksha proposes to utilize Rs. 360 crore from the Net Proceeds of the Fresh Issue towards funding capital expenditure requirement for capacity expansion at Unit 1, Unit 2, Unit 4 and Unit 5; Rs. 195 crore for prepayment of all or a portion of certain outstanding borrowings; and the balance towards general corporate purposes.
The company, which filed its draft prospectus with SEBI in September 2025, obtained its observations on February 12, 2026, as per the update with the capital markets regulator.
In the context of the IPO, receiving SEBI’s observations is equivalent to its go ahead to proceed with the public issue.
Virupaksha’s offerings include small molecule APIs, key starting materials (KSMs), and intermediates, allowing it to meet the high demand for essential medications across various therapeutic areas.
It is focussed on manufacturing products across diverse therapeutic areas of anti-histamines, analgesics, anti-fungals, anti-diabetics, anti-depressants, anti-asthmatics, anti-tussives, anti-anginals, anti- hypercholesterolemics, and anti-ulceratives.
Virupaksha operates six manufacturing units, with four located in Hyderabad, Telangana and two in Humnabad, Karnataka, equipped with an aggregate of 223 reactors with a reactor volume of 988 kilolitres.
In FY25, the company reported revenue from operations of Rs. 811 crore and a profit after tax (PAT) of Rs. 78 crore.
Axis Capital Limited and SBI Capital Markets Limited are the book running lead managers (BRLMs) to the offer.
. KNR CDS