Pharmaceutical ingredients maker SPC Life Sciences Ltd. has received capital markets regulator SEBI's go ahead to raise funds through an initial public offering.
The IPO consists of fresh issuance of equity shares worth Rs 300 crore and an offer for sale of 89.39 lakh equity shares by promoter—Snehal Rajivbhai Patel—according to the draft red herring prospectus.
The company may consider a pre-IPO placement aggregating up to Rs 60 crore and if such a placement is completed, then the fresh issue size will be reduced.
The pharma company, which filed its draft papers with the markets regulator in March seeking its nod, obtained its observations letter on June 30, an update with the Securities and Exchange Board of India showed on Monday.
In SEBI's parlance, obtaining an observation letter implies its go ahead to float the initial share sale.
Going by the draft papers, proceeds from the fresh issue will be used to pay debt, support working capital needs and fund capital expenditure requirements for setting up Phase-2 at its Dahej facility in order to expand product offerings of pharmaceutical intermediates, and for general corporate purposes.
Gujarat-based SPC Life Sciences is a leading manufacturer of advanced intermediates for certain key active pharmaceutical ingredients.
The advanced pharmaceutical intermediates which are manufactured by the company are used in growing therapeutic areas, including cardiovascular, vasodilator (anti-platelet), anti-psychotic, and anti-depressants.
Apart from SPC Life Sciences, Ratnaveer Precision Engineering Ltd. has received Sebi's nod to launch the IPO. It had filed its preliminary IPO papers with the regulator in January.
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