Quadria Capital-Backed Encube Ethicals Files DRHP For ₹3,000 Crore IPO

Mumbai-based pharmaceutical formulations company Encube Ethicals has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The company plans to raise up to ₹3,000 crore through the issue.

Promoter Mehul Madhusudan Shah will sell shares worth ₹2,000 crore, and Quadria Capital-backed Frontier Investment Holdings will offload shares worth ₹1,000 crore. The promoters hold an 80.63% stake in the company, while Frontier Investment Holdings owns 15.02%.

The issue is entirely an offer for sale (OFS), with no fresh issue of shares. As a result, the company will not receive any proceeds from the IPO.

What The Company Does

Encube Ethicals operates across three verticals spanning global generics, global contract development and manufacturing, and Indian branded formulations. It runs two manufacturing facilities in Goa and Indore with a combined production capacity of 15,624 metric tonnes and a total installed filling and packaging capacity of 807 million units, approximately 2.8 times the total US topical market demand in FY26.

The Goa facility carries approvals from 11 regulatory authorities, including:

• US Food and Drug Administration

• EU GMP

• Japan PMDA

• Health Canada

• Brazil ANVISA

• Australia TGA

• Eurasian Economic Union

The company serves more than 160 global contract development and manufacturing organisation (CDMO) customers across 50 countries.

FY26 Revenue And Customer Mix

Encube Ethicals generated most of its FY26 revenue from its global business. Its customer base also remained weighted towards international markets.

Revenue Mix (FY26)

• Global generics: 47% of total revenue

• Global CDMO: 42% of total revenue

• India branded formulations: 9% of total revenue

Customer Mix (FY26)

• Global customers: 64% of total business

• Indian customers: 36% of total business

Financial Performance

• FY26 profit: ₹437 crore, up 74.8% year-on-year

• FY26 revenue: ₹1,848.7 crore, up 37.5% year-on-year

JM Financial, Axis Capital and Kotak Mahindra Capital are the book-running lead managers.

Also Read - OPEC+ Raises Oil Output By 188,000 Bpd For September As Post-War Surplus Risk Builds