According to the draft Red Herring Prospectus (DRHP), the company’s IPO includes an offer for sale of 6.05 crore equity shares by the promoters.
A share will also be reserved for the employees of the company in the IPO.
Macleods Pharmaceuticals has Initial Public Offering (IPO) Capital market regulator to raise Rs 5,000 crore through Securities and Exchange Board of India (Sebi) ) has been filed before the preliminary documents. According to the draft Red Herring Prospectus (DRHP), the company’s IPO includes an offer for sale of 6.05 crore equity shares by the promoters. According to the draft, a share will also be reserved for the employees of the company in the IPO. Merchant banking sources said the size of the McLeods Pharmaceuticals IPO is expected to be Rs 5,000 crore.
McLeod Pharmaceuticals is engaged in the development, manufacture and distribution of a wide range of regulated products in many health-related areas. These include anti-infective, cardiovascular and vascular, diabetes, skin diseases and hormone treatment.
Sale of 6.05 crore shares through OFS
Promoters of the company will sell 6.05 crore shares through OFS. The final size of the IPO will depend on the outcome of the evaluation discussions. According to DRHP, the objective of the offer is to obtain the benefits of listing equity shares on the stock exchanges.
Kotak Mahindra Capital, ICICI Securities, Citi, Nomura and Edelweiss Financial Services are the investment banks working on the IPO. Cyril Amarchand Mangaldas and Shardul Amarchand Mangaldas are legal advisors.
Dr Rajendra Aggarwal along with his brothers Girdhari Lal Bawri and Bandwari Lal Bawri started McLeods Pharmaceuticals in 1989 with the aim of producing anti-TB drugs. Today the firm is the seventh largest in the Indian pharmaceuticals market based on its domestic sales and is engaged in developing, manufacturing and marketing a wide range of formulations in several key therapeutic areas including Anti-infective, Cardiovascular, Anti-diabetic, Dermatology .
Business is spread in 170 countries
The company also has a presence outside India. Its business is spread over 170 countries in North America, Europe, Africa, Asia, South America and Commonwealth of Independent Countries. The firm primarily manufactures its own APIs for the products it distributes outside India.
The domestic business includes branded generics and revenue from operations in India represented 51.73 per cent of total revenue from operations in FY 2021, which was the third highest proportion of domestic business among nine other major pharmaceutical companies in India. According to the DRHP, the firm has the highest number of WHO pre-qualified products globally with 65 registrations as of December 31, 2021. In addition, it has the highest number of WHO pre-qualified anti-TB product registrations with 32 more registrations.