Encube Ethicals files DRHP with Sebi for ₹3,000 cr IPO; promoter, Quadria Capital to sell stake via OFS

Mumbai-based Encube Ethicals, a fully integrated specialty pharmaceutical company, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise ₹3,000 crore through an initial public offering (IPO).

The proposed IPO, with a face value of ₹1 per share, is entirely an offer for sale (OFS), with no fresh issue of shares. The offer comprises shares worth ₹2,000 crore from promoter Mehul Madhusudan Shah and ₹1,000 crore from Frontier Investment Holdings Pte. Ltd., a Singapore-registered investment vehicle backed by private equity firm Quadria Capital.

As of now, the promoters hold an 80.63% stake in the company, while Frontier Investment Holdings owns 15.02%.

According to the IPO paper filed with the Sebi, half of the issue is reserved for qualified institutional buyers (QIBs), up to 15% for non-institutional investors (NIIs), and remaining 35% for retail individual investors.

Founded in 1995, Encube Ethicals is a global specialty pharmaceutical formulations platform with expertise in technically complex topical and transdermal dosage forms. As of March 31, 2026, the company served customers across 50 countries, including regulated markets such as the United States, the UK, Europe and India.

The company operates through three business verticals - Global Generics, Global Contract Development and Manufacturing Organisation (CDMO), and India Branded Formulations. These businesses are supported by an integrated platform comprising research and development (R&D), manufacturing facilities, quality systems and supply chain capabilities.

With over 28 years of operations, Encube has built a significant manufacturing footprint in topical formulations. As of March 31, 2026, it had an aggregate filling and packaging capacity of 807 million units, equivalent to around 2.8 times the total US topical market demand in FY26, according to a Frost & Sullivan report cited in the DRHP.

Its manufacturing facilities are accredited by 11 regulatory authorities, including the US Food and Drug Administration (USFDA), EU GMP, Japan PMDA, Health Canada, Brazil ANVISA, the Eurasian Economic Union (EAEU) and Australia's Therapeutic Goods Administration (TGA). The company employed 1,684 people as of March 31, 2026.

The company provides end-to-end development and manufacturing services to more than 160 pharmaceutical companies across 50 countries. As of March 31, 2026, its portfolio comprised over 550 stock keeping units (SKUs), primarily catering to regulated markets.

Financially, the company reported revenue from operations of ₹1,848.7 crore in FY26, compared with ₹1,085.9 crore in FY24. Net profit more than doubled to ₹436.7 crore in FY26 from ₹156.1 crore two years earlier.

JM Financial, Axis Capital and Kotak Mahindra Capital Company are the book-running lead managers to the issue, while MUFG Intime India is the registrar. The company's shares are proposed to be listed on both the BSE and the NSE.