SPC Life Sciences Ltd, a manufacturer of pharmaceutical components, has been given permission by capital markets regulator Sebi to seek money through an initial public offering (IPO).
According to the draught red herring prospectus, the IPO consists of a new issuance of equity shares worth Rs 300 crore and an Offer For Sale (OFS) of 89.39 lakh equity shares by the promoter, Snehal Rajivbhai Patel.
The size of the fresh offering will be decreased if the business decides to proceed with a pre-IPO placement that could total up to Rs 60 crore.
According to a Monday update from the Securities and Exchange Board of India (Sebi), the pharmaceutical company received its observations letter on June 30 after submitting their draught papers to the markets regulator in March seeking approval.
Receiving an observation letter signifies Sebi’s approval to float the initial share offering in Sebi jargon.
According to the draught papers, the proceeds from the new issue will be used for general corporate purposes, debt repayment, meeting working capital needs, and funding capital expenditures for establishing Phase-2 at its Dahej facility in order to increase the product offerings of pharmaceutical intermediates.
SPC Life Sciences, situated in Gujarat, is a top producer of sophisticated intermediates for a number of important active medicinal components.
The company’s innovative pharmaceutical intermediates are employed in an increasing number of therapeutic fields, such as cardiovascular, vasodilator (anti-platelet), anti-psychotic, and anti-depressant medications.
In addition to SPC Life Sciences, Ratnaveer Precision Engineering Ltd. also has received approval from Sebi to begin the IPO process. It had submitted its draughts IPO documents to the regulatory body in January.